Newly public companies tend to exhibit abnormally high accruals in the year of their initial public offering (IPO). Although the prevailing view in the literature is that these accruals are caused by opportunistic misreporting, we show that these accruals do not appear to benefit managers and instead result from the normal economic activity of newly public companies. In particular, and in contr...

Accounting accruals anticipate future economic benefits. They are intended to reverse upon the realization of the anticipated future benefits, such that their reversals have no net impact on future earnings. In practice, however, we show that extreme accruals exhibit a high frequency of subsequent reversals that do impact future earnings. We demonstrate that these reversals explain a number of ...

We investigate the association between errors in management forecasts of subsequent year earnings and current year accruals. In an uncertain operating environment, managers’ assessments of their firms’ business prospects are imperfect. Since managers’ imperfect business assessments influence both accruals generation and earnings projection, we hypothesize that management earnings forecasts exhi...

in this research, we investigate the influence of profit management on the long-term performance of ipos in tehran stock exchange. the ipos in 1378 to 1384 are used as our sample and their long-term return in a three-year period after the ipo are calculated. we start calculating the return from the first day after the month in which the financial statement of ipo is published. discretionary cur...

Introduction: The COVID-19 pandemic has emerged and is still raging around the world as can be seen from severity of pandemic, it led to rampant fraud committed by many corporations, especially in Indonesia. According a survey conducted RSM Indonesia (2020), 80% respondents stated that midst was increasing their own organizations. Although least common type financial statement fraud, losses inc...

Currently, the economic environment is significantly affected by COVID-19 pandemic. The effects are visible in area of accounting and financial reporting policies practice as well. aim this article to show how estimates can be current macroeconomic context crisis. discussion focuses especially on accruals reported cover risk uncollectable receivables, addressed IFRS 9 Financial Instruments. exa...

This study aims to examine and analyze corporate social responsibility governance on financial performance and, through earning management as a mediating variable. Financial is the dependent variable which proxied by ROA MVA. The independent variables in this were 91 GRI 4.0 indicators commissioners institutional ownership. Earning discretionary accruals. uses sample of 35 mining companies list...

This research examined the relationship between board attributes and earnings management of deposit money banks listed on Nigeria Stock Exchange for ten years period (2010-2019). Fourteen Nigerian as at 31st December, 2019 were selected samples using census sampling method. Multiple linear regression technique was employed data analysis. The results shows that academic credit increased reduced ...

This paper aims to explore the interaction between earnings management and audit opinions in context of Vietnam – an emerging country. For this purpose, two regressions were developed with sample consists 1,294 firm-years period from 2018 2020. The first regression model uses Audit Opinion as dependent variable, Discretionary Accruals (DA) independent other 8 controlling variables. results demo...