Sun, Lan

Rath, Subhrendu

2009

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.

International Journal of Business, Economics, Finance and Management Sciences, 1(2), p. 150-166

2073-0519

https://hdl.handle.net/1959.11/5060

en

World Academy of Science, Engineering and Technology

An Empirical Analysis of Earnings Management in Australia

Journal Article

Publication