Does the corporate life cycle affect earnings management? Evidence from Central European countries

Research background: Earnings manipulations are a global phenomenon, the aim of which is not only to improve financial position in accordance with Positive Accounting Theory, but also other goals company management strategy. However, diversity company’s along corporate life cycle crucial factors influencing quality earnings and existence, scope application downward upward management. Purpose article: The paper comprehensively analyse verify existence extent Central European countries an emphasis on differences between stages. Methods: study uses Mann-Whitney test binomial sample covers discretionary accruals for 2019 estimated by modified Jones Teoh, et al. models from almost 3,500 companies four countries. Findings & Value added: results show that, depending stage or country, manipulate profits, specific type its vary significantly within Lifecycle manipulation U-shaped, meaning that start-ups declining use, average, more significant On contrary, mature reduce their accounting profit. Nevertheless, share using higher than