IDEAS home Printed from https://ideas.repec.org/a/ris/joefas/0126.html
   My bibliography  Save this article

Earnings management para evitar reportar pérdidas: Chile, 2010-2014

Author

Listed:
  • Cornejo-Saavedra, Edinson Edgardo

    (Universidad del Bío-Bío)

Abstract

Purpose – This paper aims to examine whether a sample of non-financial Chilean firms performed earnings management to avoid the decreases and losses in the earnings during the 2010-2014 period. Design/methodology/approach – The analysis is undertaken using the distributions of earnings changes and earnings, according to Burgstahler and Dichev (1997) methodology. Findings – The results showed unusually low frequencies of small losses and small declines in earnings and unusually high frequencies of small benefits and small increases in earnings. Both results were statistically significant. Practical implications – The study presents evidence of possible earnings management activity to avoid reporting losses and earnings decreases during the period 2010-2014. These results would allow to identify “suspicious” companies of earnings management and would increase the likelihood of detecting firms that managed upside the reported earnings or that – in an extreme case –would be committing a fraud not disclosed. Originality/value – The results of these types of studies would be useful to carry out monitoring and control activities, to increase transparency in the stock market.

Suggested Citation

  • Cornejo-Saavedra, Edinson Edgardo, 2018. "Earnings management para evitar reportar pérdidas: Chile, 2010-2014," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 23(45), pages 167-181.
  • Handle: RePEc:ris:joefas:0126
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tobar Arias, José E. & Mora Valencia, Andrés & Benavides Franco, Julián, 2023. "Earnings management to avoid losses: Evidence in non-listed Colombian companies," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 53(C).

    More about this item

    Keywords

    Earnings management; Losses; Earnings; Frequency distribution; Profit threshold;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:joefas:0126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ESAN Ediciones (email available below). General contact details of provider: https://edirc.repec.org/data/esannpe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.