Earnings management is generally the behavior of opportunism Finance essay
This page of the essay, download the full version above. With regard to opportunism, there are two main schools of thought, namely the Transaction Cost Analysis theory (TCA, Williamson, 1985: 47) and the Social Exchange Theory SET. TCA focuses on the conceptualization of opportunism in the context of relational terms, while SET. In terms of earnings management, we examine earnings smoothing and earnings aggressiveness. We find that Asian companies with relatively good CSR are significantly less involved in earnings management. Investor protection is also negatively associated with earnings management. Resume. Agency theory has interested several disciplines: accounting, finance, economics, law, political science, strategy or organizational psychology. This theory, which the. In response to the call in both the earnings management and sustainability literatures to examine corporate governance patterns, this study fills the gap in the sustainability literature by shedding light on this issue. My dissertation contains three essays in the field of behavioral finance. The first essay examines the asset price implications of analysts' strategic incentives. I believe that deviations between consensus analyst optimism about forecasts and recommendations for the same company lead to temporary price movements. For example F. Financial fraud and scams. Paul Salvin and Nimkit Lepcha. Department of Peace and Conflict Studies and. Management, Sikkim University, Gangtok, Sikkim, India. Synonyms. Financial Abuse, Financial reporting is the most important source of information about companies, and profits are the main measure of financial performance used by investors and analysts 2,3. Being aware of this, managers are motivated to manage accounting figures to achieve expected short-term results. and what role corporate governance plays in mitigating this EPS management behavior. Resume. Objective- This study aims to investigate the relationship between. real income management REM and sticky Selling General and. Administrative SG amp A costs for a development. The existing literature has generally focused on the impact of earnings management on financial performance and the empirical tests have not yielded comparable results. The study shows that corporate social responsibility plays a moderating role in determining the impact of earnings management on financial performance. All three definitions relate to actions that management takes in the context of financial reporting, including structuring transactions so that a desired accounting treatment applies, e.g., pooling, operating leases. However, the second definition also allows for earnings management to occur through the timing of real investments and earnings management. True earnings management is earnings manipulation through operating activities, which directly affect cash flow, Sun et al. 2014 In addition, there is also the