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Financial Crisis And Earnings Management: The European Evidence

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  • Filip, Andrei
  • Raffournier, Bernard

Abstract

We examine the impact of the 2008–2009 financial crisis on the earnings management behavior of European-listed firms. We find that earnings management has significantly decreased in the crisis years. This trend is confirmed in most of the 16 countries under review. We also report a link between the level of earnings management and the economic growth rate and provide evidence suggesting that national characteristics and market forces affect the propensity of income smoothing but not accruals quality.

Suggested Citation

  • Filip, Andrei & Raffournier, Bernard, 2014. "Financial Crisis And Earnings Management: The European Evidence," The International Journal of Accounting, Elsevier, vol. 49(4), pages 455-478.
    • Handle: RePEc:eee:accoun:v:49:y:2014:i:4:p:455-478
    DOI: 10.1016/j.intacc.2014.10.004
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    More about this item

    Keywords

    Financial crisis; Earnings management; Europe; IFRS; Investor protection; Accounting quality;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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