Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/5957
Title: Fundamental Determinants, Opportunistic Behaviour and Signaling Mechanism: An Integration of Earnings Management Perspectives
Contributor(s): Sun, Lan  (author); Rath, Subhrendu (author)
Publication Date: 2008
Handle Link: https://hdl.handle.net/1959.11/5957
Abstract: The systematic study of earnings management has now developed into a dynamic body of empirical literature. Despite a dynamic body of earnings management research that are well founded in economic theory, there have not been any attempts to take an integrated perspective (Beneish, 2001). This study integrates and well reconciles different research perspectives in the earnings management literature in attempt to provide a theoretical guidance for the future research. We first formulate a conceptual framework for understanding earnings management fundamental determinants based on market imperfection of information asymmetry and agency conflicts. We then highlight the arguments of opportunistic behaviour and signalling mechanism in order to address that earnings management is not necessarily bad; it could be a device to enhance communication with external parties and improve internal efficiency. Finally, we review different managerial incentives that drive earnings management and we discuss the linkage between efficient contracting, opportunistic behaviour and signalling mechanism.
Publication Type: Journal Article
Source of Publication: International Review of Business Research Papers, 4(4), p. 406-420
Publisher: World Business Institute
Place of Publication: Australia
ISSN: 1832-9543
Field of Research (FOR): 150103 Financial Accounting
150201 Finance
Socio-Economic Outcome Codes: 910402 Management
910206 Market-Based Mechanisms
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
Other Links: http://www.bizresearchpapers.com/32-Lansun.pdf
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Appears in Collections:Journal Article
UNE Business School

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