Accounting Comparability and Earnings Management Strategies: Evidence from Southeast Asian Countries

Yeni Januarsi, Tsung Ming Yeh

Research output: Contribution to journalArticlepeer-review

Abstract

We examined the effect of accounting comparability on the use of accrual earnings management (AEM) and real earnings management (REM) among five members of the Association of Southeast Asian Nations. Analyzing 1,195 listed non-financial companies from 2014 to 2017, we find that more comparable accounting information between firms induces managers to engage in more REM and less AEM, supporting the substitute hypothesis. The results remain similar under the robustness tests. Our results suggest that reporting and legal environment factors may affect cost-benefit considerations versus incentives for using earnings management strategies.

Original languageEnglish
JournalEmerging Markets Finance and Trade
DOIs
Publication statusAccepted/In press - 2022

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics, Econometrics and Finance(all)

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