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Earnings management strategies in Brazil: Determinantcosts and temporal sequence

Author

Listed:
  • Cesar Medeiros Cupertino

    (Federal University of Santa Catarina, Brazil)

  • Antonio Lopo Martinez

    (Fucape Business School, Brazil)

  • Newton C.A. da Costa Jr

    (Federal University of Santa Catarina, Brazil)

Abstract

This paper describes a study that analyses earnings management strategies involving accounting choices or real activities in Brazil. An analysis is conducted of the relationships between earnings management strategies their determinant costs and of the temporal sequence in which these management strategies are applied. The results of empirical tests indicate that adoption of management strategies is dependent on their relative costs. There is a temporal relationship between the two types of strategies for manipulation of year-end results, with real activities preceding accounting choices. It was also observed that the level of manipulation by accruals (real activities) reduced (increased) after adoption of the IFRS in Brazil.Classification-JEL: M4; M41; M1

Suggested Citation

  • Cesar Medeiros Cupertino & Antonio Lopo Martinez & Newton C.A. da Costa Jr, 2017. "Earnings management strategies in Brazil: Determinantcosts and temporal sequence," Contaduría y Administración, Accounting and Management, vol. 62(5), pages 7-8, Diciembre.
    • Handle: RePEc:nax:conyad:v:62:y:2017:i:5:p:7-8
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    File URL: http://www.cya.unam.mx/index.php/cya/article/view/1075/1005
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    References listed on IDEAS

    as
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    8. Zhu, Tingting & Lu, Meiting & Shan, Yaowen & Zhang, Yuanlong, 2015. "Accrual-based and real activity earnings management at the back door: Evidence from Chinese reverse mergers," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 317-339.
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    More about this item

    Keywords

    Earnings management; Real activities management; Manipulation by real activities; IFRS;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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