Posts categorized under Corporate Finance

Earnings management dynamics in Portuguese listed firms

June 23, 2017
There are several incentives to engage in earnings management, which managers need to consider. Likewise, there are different ways to drive earnings and cash flows in a certain direction. Given the complex context in which firms operate, earnings management may be seen has a continuous and iterative process characterized by a mixture of incentives and practices. This research studies earnings management in Portuguese listed firms. The paper addresses two main strategies, namely real management and accrual management.