Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Accounting conservatism and Accounting-based Earnings Management Practices (AEMP) introduce bias in financial information (FI), thereby influencing stakeholder behavior the decision-making process. This study aims to analyze, from certified accountants’ perspective, AEMP Portugal. Specifically, it analyses (1) development of its impact on FI reporting, (2) main hampered implementation, (3) need for instruments corporate governance mechanisms mitigate AEMP. Besides this research (4) relationship between accountant’s characteristics (gender, age, professional experience, educational qualifications, training area. To achieve proposed objectives, we have used a quantitative methodological approach with survey questionnaire, conducting an empirical based sample accountants. Based 159 accountants, results found that majority respondents indicate Portuguese companies develop these practices negative significant quality statements (FS). Moreover, most accountants point out is important adopt measures will prevent abuse are establishments more precise concrete accounting standards application sanctions. The also audit committee efficient internal control able mitigating effects Finally, individual such as area, significantly influence their perception presents relevant contributions theory practice. First, develops literature evaluates AEMP, particularly Portugal, where studies scarce. Second, original because considers professionals. Third, allows entities operate standardization users in-depth knowledge AEMP’s mechanisms.