Earnings Management in Public Healthcare Organisations: The Case of the English NHS Hospitals

Public Money & Management, Forthcoming

31 Pages Posted: 13 Jul 2020

See all articles by Seraina C. Anagnostopoulou

Seraina C. Anagnostopoulou

University of Piraeus, Department of Banking and Financial Management

Charitini Stavropoulou

City University London

Date Written: July 7, 2020

Abstract

We explore whether NHS hospitals managed their earnings upward before applying for Foundation Trust (FT) status, a scheme that allowed them greater financial freedom and management autonomy, in order to present an overly positive picture and increase their chances for a successful application. We show that NHS FTs adjusted discretionary accruals upward for up to two years before applying for FT status. This practice was negatively associated with their future financial performance.

Keywords: earnings management, institutional transition, NHS Foundation Trusts, financial performance, healthcare, hospitals

JEL Classification: M41, M48, I11, I18

Suggested Citation

Anagnostopoulou, Seraina C. and Stavropoulou, Charitini, Earnings Management in Public Healthcare Organisations: The Case of the English NHS Hospitals (July 7, 2020). Public Money & Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3645342

Seraina C. Anagnostopoulou (Contact Author)

University of Piraeus, Department of Banking and Financial Management ( email )

80 Karaoli & Dimitriou Str.
Piraeus, 18534
Greece

Charitini Stavropoulou

City University London ( email )

Northampton Square
London, EC1V OHB
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
9
Abstract Views
55
PlumX Metrics