Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators

26 Pages Posted: 8 May 2000  

Patricia M. Dechow

University of California, Berkeley - Accounting Group

Douglas J. Skinner

The University of Chicago - Booth School of Business

Date Written: February 2000

Abstract

We address the fact that accounting academics often have very different perceptions of earnings management than do practitioners and regulators. Practitioners and regulators often see earnings management as pervasive and problematic, and in the need of immediate action to remedy. Academics are more sanguine, unwilling to believe that earnings management is being actively practiced by most firms or that the earnings management that does exist should necessarily concern investors. We explore the reasons for these different perceptions, and argue that each of these groups may benefit from some rethinking of their views about earnings management.

JEL Classification: M41, M43

Suggested Citation

Dechow, Patricia M. and Skinner, Douglas J., Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators (February 2000). Available at SSRN: https://ssrn.com/abstract=218959 or http://dx.doi.org/10.2139/ssrn.218959

Patricia M. Dechow (Contact Author)

University of California, Berkeley - Accounting Group ( email )

Haas School of Business
Berkeley, CA 94720
United States

Douglas J. Skinner

The University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7137 (Phone)

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