An Empirical Analysis of Earnings Management in Australia

Author(s)
Sun, Lan
Rath, Subhrendu
Publication Date
2009
Abstract
This is a comprehensive large-sample study of Australian earnings management. Using a sample of 4,844 firm-year observations across nine Australia industries from 2000 to 2006, we find substantial corporate earnings management activity across several Australian industries. We document strong evidence of size and return on assets being primary determinants of earnings management in Australia. The effects of size and return on assets are also found to be dominant in both income-increasing and income-decreasing earnings manipulation. We also document that that periphery sector firms are more likely to involve larger magnitude of earnings management than firms in the core sector.
Citation
International Journal of Business, Economics, Finance and Management Sciences, 1(2), p. 150-166
ISSN
2073-0519
Link
Publisher
World Academy of Science, Engineering and Technology
Title
An Empirical Analysis of Earnings Management in Australia
Type of document
Journal Article
Entity Type
Publication

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