A Framework for the Classification of Accounts Manipulations

HEC Accounting & Management Control Working Paper No. 708/2000

94 Pages Posted: 21 Mar 2001

See all articles by Gaetan Breton

Gaetan Breton

University du Quebec at Montreal

Hervé Stolowy

HEC Paris - Accounting and Management Control Department

Date Written: June 28, 2000

Abstract

Accounts manipulations have been a matter of research, discussion and, even, controversy in several countries such as the United States, Canada, the United Kingdom, Australia and France. The objective of this paper is to elaborate a general framework for classifying accounts manipulations through a thorough review of the literature. This framework is based on the desire to influence the market participants' perception of the risk associated to the firm. The risk is materialized through the earnings per share and the debt/equity ratio. The literature on this topic is already very rich, although we have identified series of areas in need for further research.

Keywords: Accounts manipulations; Earnings management; Income smoothing; Big bath accounting; Creative accounting

JEL Classification: M41, M43

Suggested Citation

Breton, Gaetan and Stolowy, Hervé, A Framework for the Classification of Accounts Manipulations (June 28, 2000). HEC Accounting & Management Control Working Paper No. 708/2000, Available at SSRN: https://ssrn.com/abstract=263290 or http://dx.doi.org/10.2139/ssrn.263290

Gaetan Breton (Contact Author)

University du Quebec at Montreal ( email )

P.O. Box 8888, Downtown Station
Succursale Centre Ville Department of Accounting Sciences
Montreal, Quebec H3C 3P8
Canada
514-987-3000 (Phone)
514-987-6629 (Fax)

Hervé Stolowy

HEC Paris - Accounting and Management Control Department ( email )

Jouy-en-Josas Cedex
France
+33 1 39 67 94 42 (Phone)
+33 1 39 67 70 86 (Fax)

HOME PAGE: http://www.hec.fr/stolowy

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