A Framework for the Classification of Accounts Manipulations
HEC Accounting & Management Control Working Paper No. 708/2000
94 Pages Posted: 21 Mar 2001
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: Suggested Citation
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