Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/6676
Title: Opportunistic Behaviour, Signalling Mechanism and Efficient Contracting: A Survey of Earnings Management
Contributor(s): Rath, Subhrendu (author); Sun, Lan  (author)
Publication Date: 2007
Handle Link: https://hdl.handle.net/1959.11/6676
Abstract: Earnings management is an issue that directly affects the over all integrity of financial reporting and significantly influences resource allocation in an economy. This paper provides a selective review of earnings management studies based on a financial economics framework of information asymmetry and agency costs. This paper also reviews the development of research focus in earnings management studies, in particular, this paper focus on two competing perspectives, managerial opportunistic behaviour and information signalling mechanism to characterise much of the research in this area. We particularly highlight that earnings management is not necessarily an opportunistic behaviour but could be a signalling mechanism to improve efficiency. This paper concludes that the limitation of current research in this field is lack of theoretical guidance and lack of consistency and integration among different research perspectives. The future direction for this area research, therefore, is to reconcile the competing perspectives, evoking a multi-research approach, and calling for a return to work in economic fundamental theories.
Publication Type: Conference Publication
Conference Details: IBRC 2007: 7th International Business Research Conference: Research Matters, Sydney, Australia, 3rd - 6th December, 2007
Source of Publication: Proceedings of the Seventh International Business Research Conference
Publisher: World Business Institute
Place of Publication: Melbourne, Australia
Fields of Research (FoR) 2008: 150103 Financial Accounting
150201 Finance
Socio-Economic Objective (SEO) 2008: 910206 Market-Based Mechanisms
910402 Management
Peer Reviewed: Yes
HERDC Category Description: E1 Refereed Scholarly Conference Publication
Publisher/associated links: http://www.worldbizconference.com/Final-prog-07-25nov.pdf
Appears in Collections:Conference Publication

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