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Managerial Incentives For Earnings Management Among Listed Firms: Evidence From Fiji

Author

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  • Prena Rani
  • Fazeena Fazneen Hussain
  • Priyashni Vandana Chand

Abstract

High profile corporate collapses of the past decade have undermined the integrity of financial reporting. Earnings management has been of growing concern to many academics, practitioners and regulators. Despite an enormous amount of regulation and standards governing the financial reporting process, earnings management practices are accelerating at an alarming rate in organizations today. Fiji, like many other developed countries, has had instances of financial reporting failures. One does not need to look further than the multimillion-dollar saga involving the state owned Bank, the National Bank of Fiji, which was the largest known financial scandal in the history of Fiji and the Pacific Islands. This suggests that even emerging economies like Fiji were long ago, introduced to earnings management practices. However, this has not been apparent. Most studies on managerial incentives for earnings management, have been conducted in the USA, UK, Canada, Australia and New Zealand. Very few studies took place in emerging economies like Fiji. This study uses a questionnaire-based approach to examine managerial incentives for earnings management among listed firms in Fiji, highlighting the most prevalent incentive.

Suggested Citation

  • Prena Rani & Fazeena Fazneen Hussain & Priyashni Vandana Chand, 2013. "Managerial Incentives For Earnings Management Among Listed Firms: Evidence From Fiji," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 7(1), pages 21-31.
    • Handle: RePEc:ibf:gjbres:v:7:y:2013:i:1:p:21-31
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    Cited by:

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    3. Ivan Gudev, 2020. "Creative Accounting – Definition, Types, Purposes and Impact on United Nations’ Sustainable Development Goals," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 328-341, June.

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    More about this item

    Keywords

    Incentives for earnings management; emerging economies;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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