2017 Fiscal Year Final Research Report
International comparison for earnings management
| Project/Area Number |
15K03763
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | Tohoku University |
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Principal Investigator |
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| Co-Investigator(Kenkyū-buntansha) |
榎本 正博 神戸大学, 経済経営研究所, 准教授 (70313921)
山口 朋泰 東北学院大学, 経営学部, 准教授 (50613626)
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| Project Period (FY) |
2015-04-01 – 2018-03-31
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| Keywords | 利益マネジメント / 国際比較 / 金融発展 |
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| Outline of Final Research Achievements |
We investigate whether a country's level of financial development is associated with influences its earnings management in an international setting. Financial development is likely to heighten the monitoring and scrutiny of accounting figures because of strengthened investor protection laws and regulations as well as sophisticated market participants. Research shows that managers tend to apply real earnings management, instead of accrual-based earnings management, under strict accounting standards, regulations, and close auditor scrutiny. Thus, we explore the alternative hypothesis that accrual-based earnings management decreases but real earnings management increases along with higher financial development. We examine the relationship between financial development and both types of earnings management using 56,830 observations in 37 countries. The results indicate that both types of earnings management are more restrained under higher levels of financial development.
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| Free Research Field |
財務会計
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