494 research outputs found
Introduction
No full textThis opening chapter presents the research question, gives a brief overview of the book, and pinpoints the main theoretical and practical contributions of the present work. The study examines whether the generative mechanism for managing earnings identified by the previous research (i.e., financial crisis) is adequate. Chapter 2 presents the earnings management phenomenon while Chap. 3 provides a critical realist evaluation of mainstream earnings management literature. Chapter 4 approaches the question of the relationship between financial crisis and earnings management. Finally, Chap. 5 presents both the positivist and the critical realist approach to the research question
Does Financial Crisis Cause Earnings Management?
No full textPrevious research on how financial crisis affects managers’ earnings management behavior has resulted in different scenarios with inconclusive results. This Chapter presents both the positivist and the critical realist approach to the research question. To address the ambiguity in the findings in the literature, the present study used a mainstream approach, with the results showing no statistical support for the hypothesis that financial crisis influences earnings management. More specifically, results indicate that managers’ earnings behavior does not differ from the pre-crisis to the crisis periods. Further, it presents critical realism as an alternative to mainstream approach. The study argues against the existence of a causal law based on a constant conjunction model (i.e., whenever a financial crisis happens, earnings management happens) and concludes that financial crisis cannot be seen as the cause of earnings management. Finally, it suggests exploring other structures at work that might be responsible for earnings management
Earnings Management: Origins
No full textThis chapter seeks to describe the field of inquiry by defining the concepts of earnings quality, earnings management, fraud, and earnings manipulation. It presents the earnings management phenomenon, specifically, from whence it comes. It reviews the mainstream studies, and focuses on two types of earnings management: accruals earnings management and real activities earnings management. In addition, studies related to fraudulent financial reporting (or non-generally accepted accounting principles, i.e. non-GAAP earnings management) will be presented and discussed as well. Furthermore, this chapter presents studies on managerial incentives for earnings management. The most important incentives (or causes) for managing earnings are discussed and the contradictory results provided by some of them highlighted. Finally, a few offsetting causes that may interfere with these main incentives for managing earnings are presented
Financial Crisis as a Major Cause of Earnings Management: Theoretical Background and Literature Review
No full textThis chapter approaches the question of the relationship between financial crisis and earnings management. It presents a review of studies that identified financial crisis as a major cause of earnings management. Previous research on the impact of financial crisis on managers’ earnings management behavior has yielded ambiguous results, depicting different scenarios depending on the choice of firm context/type, and on the start date of the financial crisis. The results show that there is a lack of consensus on the direction and magnitude of earnings management in times of recession. Results of the performed literature review will be operationalized into a hypothesis presented in the following Chap. 5. Therefore, this chapter is essentially propaedeutic to Chap. 5
A Critical Realist Perspective on Earnings Management
No full textPrior studies have provided little evidence of earnings management activities although research designs have included the widespread use of strong incentives to manage earnings; i.e., a widespread approach in the earnings management literature is to first identify conditions in which managers’ incentives to manage earnings are likely to be strong, and then test whether patterns of earnings management are observable. Furthermore, the evidence provided by prior studies is often conflicted on what motivates managers to manage earnings. This chapter shifts away from the contradictory conclusions drawn on the causes of earnings management presented by prior positivist research (discussed in Chap. 2 ). It introduces critical realism as an alternative to the positivist philosophical perspective to investigate the earnings management phenomenon. Finally, it provides a critical realist evaluation of mainstream earnings management literature and related incentives (or identified causes) that have been proposed by prior studies for managing earnings
Financial Crisis: Time to Manage Earnings?
No full textPrevious research on how financial crisis affects managers’ earnings management behavior has resulted in different scenarios with inconclusive results. To address the ambiguity in the findings in the literature, the present study presents critical realism as an alternative to the positivist mainstream approach. The study argues against the existence of a causal law based on a constant conjunction model (i.e., whenever a financial crisis happens, earnings management happens) and concludes that financial crisis cannot be seen as the cause of earnings management. Finally, it suggests exploring other structures at work that might be responsible for earnings managemen
IFRS adoption. Evidences from Italian companies
No full textNowadays Italian listed and non listed companies adopt two distinct set of accounting principles. Starting from 2005 the mandatory adoption of IFRS for all listed companies stimulated a huge process of change which involves not only the technicalities about recognition, measurement and disclosure of accounting events, but also entails a cultural revolution in our accounting tradition developed through more than 100 years.
In this paper are shown the findings of a research project whose purpose was to identify the most relevant impacts produced by IFRS adoption on company information systems and performance analysis and management.
The basic research hypothesis is that the differences between domestic accounting principles and IFRS determine changes in company information systems. This changes involve the whole information production process: collection of data, manipulation and communication of information. Just as example we could think at impairment test: its application require the acquisition of conjectured information, from internal information sources i.e. the management information system, or from external sources.
Moreover, as a second research hypothesis, IFRS adoption improve the company disclosure with a wider set of management information (i.e. about business combination, segmental reporting, or transactions with related parties) this should create a convergence tendency between external reporting with those required by internal users.
The research was developed through a first step of deep analysis of both the theoretical contributions and the set of IFRS, in order to identify the range of possible implication induced on Italian listed companies, in their management control systems, information systems, and performance indicators.
Afterwards the hypothesis about the implications of IFRS adoption have been tested employing the case studies technique.
In brief the results show that only a limited number of IFRS generate significant implications on management control systems, because increase the diffusion of dimensions and indicators formerly not widely employed (at least on Italian context).
Instead by the side of information systems is possible to determine more relevant implications caused by the introduction of new applications useful to produce the new set of mandatory information.
Finally, a limited set of research hypothesis, not even confirmed by the empirical test, drew possibilities for IFRS adoption to stimulate changes on management information processes: for example the adoption of fair value accounting for property, plants and equipments, should produce consequences on product costing methodologies. The results don’t confirm this hypothesis, showing the existence of a kind of double track in elaboration processes which keep separate external from internal reporting: the former IFRS compliant, the second still connected with the traditional accounting principles.
This paper gives a deeper description of the implications related to the adoption of IAS 1 for what concern the construction and analysis of the income statement
A literature based picture of legally registered mafia companies
No full textThe literature review aims at describing legally-registered Mafia firms that is,
companies, apparently engage in lawful activities, listed in the commercial register, but
owned by a Mafia family. Academic interest is most certainly focused on the Italian national
level. However, more than one scholar has looked into this phenomenon, even outside of
national borders
“Aspetti generali della civiltà minoica e micenea”
No full textIntroduzione generale sulle civiltà egee attraverso la documentazione archeologica ed epigrafica. Principali problemi nell'interpretazione dello sviluppo storico di tali civiltà. L'organizzazione territoriale della Creta minoica e del continente Greco. Le scritture egee: geroglifico minoico, lineare A e lineare B. La decifrazione della Lineare B. Letteratura micenea. Questi temi, messi insieme, delineano un quadro omogeneo e ampiamente sviluppato in ogni suo aspetto, di due civiltà che si sono influenzate reciprocamente in maniera positiva ma che hanno sviluppato nello stesso tempo delle proprie peculiarità che hanno permesso loro di essere distinte non solo sul piano cronologico ma soprattutto su quello politico e religioso.
Analizzate sotto questa ottica “individualistica” la civiltà minoica e, immediatamente dopo, quella micenea, hanno rappresentato le prime civiltà dell’Occidente che hanno osato contrastare il pressante monopolio orientale e, nello stesso tempo, si sono proposte come la culla naturale e culturale dove potesse nascere e fiorire la grande civiltà greca del I millennio
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