Trade-off between Accrual-based Earnings Management and Real Activities Manipulation
The extensive literature on earnings management largelyfocuses on accrual-based earnings management, while earningmanagement may be done through accruals, real activities, or both.This study examines how common is using real activities and accrualsas substitutes in managing earnings in Iran. The sam...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
University of Tehran
2014-02-01
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| Series: | بررسیهای حسابداری و حسابرسی |
| Subjects: | |
| Online Access: | https://acctgrev.ut.ac.ir/article_36587_68be0dbd2f9ed308d8894aa89f090a0f.pdf |
| Summary: | The extensive literature on earnings management largelyfocuses on accrual-based earnings management, while earningmanagement may be done through accruals, real activities, or both.This study examines how common is using real activities and accrualsas substitutes in managing earnings in Iran. The samplecontains208earnings management suspect firm-years over the period1383–1391. For hypothesises testing, this study conducts theHeckman two-step procedure. The results suggest that managerssomewhat trade off the two earnings management methods based ontheir relative costs. In addition, results provide evidence that managersadjust the level of accrual-based earnings management according tothe level of real activities manipulation realized. |
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| ISSN: | 2645-8020 2645-8039 |