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Earnings Management. An overview of the relative literature

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  • Ioannis Dokas
  • Christos Leontidis
  • Nicolaos Eriotis
  • Konstantinos Hazakis

Abstract

This article aims to present a critical overview of the traditional studies in earnings management, focusing on the impact on the making decision process. This overview in the literature provides numerous aspects of this topic, in line with the firms’ motivations. Earnings management procedure includes smoothing and opportunistic practices and illustrating accounting rules with a significant effect on accounting information quality. Several researchers have shifted their attention to real activities as a primary method or supplementary to accrual-based methods to obtain a complete view of the earnings management levels. Earnings management is considered an opportunistic instrument, and it can be part of the aggregate long-term business strategy. This review study provides some guidelines, to academics and professionals, in line with the models and the motivations that lead managers to engage in this procedure. This overview creates new research avenues enhancing the existing knowledge.

Suggested Citation

  • Ioannis Dokas & Christos Leontidis & Nicolaos Eriotis & Konstantinos Hazakis, 2021. "Earnings Management. An overview of the relative literature," Bulletin of Applied Economics, Risk Market Journals, vol. 8(2), pages 25-55.
    • Handle: RePEc:rmk:rmkbae:v:8:y:2021:i:2:p:25-55
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    References listed on IDEAS

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    More about this item

    Keywords

    Earnings management; accounting information quality; manipulation; financial reports;
    All these keywords.

    JEL classification:

    • G4 - Financial Economics - - Behavioral Finance
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics

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