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Comparison of cosmetic earnings management for the developed markets and emerging markets: Some empirical evidence from the United States and Taiwan

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  • Lin, Fengyi
  • Wu, Sheng-Fu

Abstract

This study examines the effect of the implementation of corporate governance regulations on cosmetic earnings management in developed and emerging markets respectively. Using Benford's Law, the analysis employs 84,870 positive earnings observations for all publicly listed US and Taiwan companies from 1990 to 2011.

Suggested Citation

  • Lin, Fengyi & Wu, Sheng-Fu, 2014. "Comparison of cosmetic earnings management for the developed markets and emerging markets: Some empirical evidence from the United States and Taiwan," Economic Modelling, Elsevier, vol. 36(C), pages 466-473.
    • Handle: RePEc:eee:ecmode:v:36:y:2014:i:c:p:466-473
    DOI: 10.1016/j.econmod.2013.10.002
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    Cited by:

    1. Lin, Fengyi & Lin, Li-Jung & Yeh, Chin-Chen & Wang, Teng-Shih, 2018. "Does the board of directors as Fat Cats exert more earnings management? Evidence from Benford’s law," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 158-170.
    2. Wil Martens & Prem Yapa & Maryam Safari, 2021. "Earnings Management in Frontier Market: Do Institutional Settings Matter?," Economies, MDPI, vol. 9(1), pages 1-19, February.
    3. Charles E. Jordan & Stanley J. Clark & Marilyn A. Waldron, 2014. "Cosmetic Earnings Management before and after Corporate Governance Legislation in Canada," Accounting and Finance Research, Sciedu Press, vol. 3(4), pages 105-105, August.
    4. Aineas Kostas Mallios, 2023. "Manipulation in reported dividends: Empirical evidence from US banks," Economics Bulletin, AccessEcon, vol. 43(1), pages 441-461.
    5. Theoharry Grammatikos & Nikolaos I. Papanikolaou, 2021. "Applying Benford’s Law to Detect Accounting Data Manipulation in the Banking Industry," Journal of Financial Services Research, Springer;Western Finance Association, vol. 59(1), pages 115-142, April.
    6. Viana, Jr., Dante Baiardo C. & Lourenço, Isabel & Black, Ervin L. & Martins, Orleans Silva, 2023. "Macroeconomic instability, institutions, and earnings management: An analysis in developed and emerging market countries," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    7. Yishu Wang & Xue Jiang & ZhenJia Liu & Weixing Wang, 2015. "Effect of Earnings Management on Economic Value Added: A China Study," Accounting and Finance Research, Sciedu Press, vol. 4(3), pages 1-9, August.
    8. Que, Jiangjing & Zhang, Xueyong, 2019. "Pre-IPO growth, venture capital, and the long-run performance of IPOs," Economic Modelling, Elsevier, vol. 81(C), pages 205-216.

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