The Impact of Situational and Demographic Factors on Ethical Perceptions of Earnings Management Practices Among Professionals

NSBM Journal of Management, Volume 1, No. 2, July – December, 2015, pp.71-93.

23 Pages Posted: 10 Oct 2019

See all articles by Roshan Ajward

Roshan Ajward

University of Sri Jayewardenepura

Date Written: December 29, 2015

Abstract

Earnings management has re-emerged as a contemporary topic particularly during and in the aftermath of the global financial crisis. In this backdrop, the two main objectives of this study were to examine whether situational factors, (i.e., nature, direction, materiality and intention of earnings management practices), and selected demographic features (i.e., gender, age, sector, employment status, tenure, educational qualifications, and professional qualifications) have an impact on the ethical perceptions of earnings management practices of professionals. For this purpose, 90 professionals from the accounting and auditing disciplines were selected and a questionnaire consisting of thirteen scenarios on earnings management administered among them. The findings of the study showed that the ethical perceptions of professionals differ according to the nature, direction, materiality and intention of the earnings manipulations involved. Further, overall, it was revealed that their ethical perceptions are not impacted by the selected demographic factors. These findings shed light on an important topic (i.e., perceptions of earnings management practices) that has not yet been examined adequately in the local context.

Keywords: earnings management, demographic factors, perceptions of professionals

Suggested Citation

Ajward, Roshan, The Impact of Situational and Demographic Factors on Ethical Perceptions of Earnings Management Practices Among Professionals (December 29, 2015). NSBM Journal of Management, Volume 1, No. 2, July – December, 2015, pp.71-93., Available at SSRN: https://ssrn.com/abstract=3461308

Roshan Ajward (Contact Author)

University of Sri Jayewardenepura ( email )

Nugegoda
Gandodawila
Gangodawila, Nugegoda 10250
Sri Lanka
0714837303 (Phone)
10250 (Fax)

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