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An Empirical Research on Factors Affecting the Liquidity of Listed Construction and Materials Firms: Evaluation from Quantile Regression Model Read chapter Read first chapter

2024 | OriginalPaper | Chapter

The Choice Between Accrual and Real Manipulation Around Information Uncertainty

Authors : Thi Thu Ha Nguyen, Salma Ibrahim

Published in: Proceedings of the 4th International Conference on Research in Management and Technovation

Publisher: Springer Nature Singapore

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Abstract

Previous studies on opportunistic earnings management using accrual and real manipulation related to benchmark-beating find mixed evidence, especially when investigating alternative mechanisms (i.e., accrual earnings management and real earnings management). One issue that has not been examined is the information uncertainty environment. We expect that greater information uncertainty would provide more ambiguity about earnings management for market participants. Therefore, if managers are opportunistic, they are more likely to choose the less costly earnings management mechanism, i.e., accrual manipulation. The overall results show that firms just meeting earnings benchmarks use more accrual earnings management but not real earnings management in the high information uncertainty environment. The results hold after controlling for endogeneity and other factors that may affect earnings management.

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previous chapter An Empirical Research on Factors Affecting the Liquidity of Listed Construction and Materials Firms: Evaluation from Quantile Regression Model
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Metadata
Title
The Choice Between Accrual and Real Manipulation Around Information Uncertainty
Authors
Thi Thu Ha Nguyen
Salma Ibrahim
Copyright Year
2024
Publisher
Springer Nature Singapore
Book
Proceedings of the 4th International Conference on Research in Management and Technovation

Print ISBN: 978-981-9984-71-8

Electronic ISBN: 978-981-9984-72-5

Copyright Year: 2024

DOI
https://doi.org/10.1007/978-981-99-8472-5_2

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