Is Earnings Management Affected by Human Development and Economic Freedom?
Abstract
Based on the idea that insiders (i.e., managers and controlling shareholders) engage in earnings management to mask their diversion and rent seeking activities from outsiders, this paper presents international evidence supporting both a “diversion hypothesis” where earnings management is decreasing in economic freedom, and a “penalty hypothesis” where earnings management is increasing in human development.
Citation
Riahi‐Belkaoui, A. (2004), "Is Earnings Management Affected by Human Development and Economic Freedom?", Review of Accounting and Finance, Vol. 3 No. 1, pp. 115-127. https://doi.org/10.1108/eb043398
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited