EARNINGS MANGEMENT OCCURENCE IN TIMES OF CRISIS: INSIGHTS FROM THE LITERATURE Abstract: This paper discusses the main findings in the literature and offers interesting insights in order to understanding the behavior of firms in times of financial distress. In this respect the occurrence and magnitude of earnings management activities are examined via global financial crisis, bringing into attention the contextual earnings management studies. The main discussions are related to the impact of economic environment on earnings management and further on value relevance of earnings in times of crisis. Since prior research is inconclusive in terms of earnings management occurrence and magnitude in times of financial crisis, future springs of research should be conducted in order to examine if there is a relationship between the financial crisis and earnings management practices. Keywords: Earnings management, Global financial crisis, contextual earnings management studies
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