EARNINGS MANAGEMENT AND ECONOMIC CRISES IN THE BRAZILIAN CAPITAL MARKET
The 2008 economic crisis challenged accounting, either demanding recognition and measurement criteria well adjusted to this scenario or even questioning its ability to inform appropriately entities’ financial situation before the crisis occurred. So, our purpose was to verify if during economic cris...
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| Format: | Article |
| Language: | English |
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Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo
2014-05-01
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| Series: | RAE: Revista de Administração de Empresas |
| Subjects: | |
| Online Access: | http://rae.fgv.br/sites/rae.fgv.br/files/artigos/earnings_management_and_economic_crises_in__the_brazilian_capital_market.pdf |
| _version_ | 1797719341629702144 |
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| author | Aldy Fernandes da Silva Elionor Farah Jreige Weffort Eduardo da Silva Flores Glauco Peres da Silva Eduardo da Silva Flores |
| author_facet | Aldy Fernandes da Silva Elionor Farah Jreige Weffort Eduardo da Silva Flores Glauco Peres da Silva Eduardo da Silva Flores |
| author_sort | Aldy Fernandes da Silva |
| collection | DOAJ |
| description | The 2008 economic crisis challenged accounting, either demanding recognition and measurement criteria well adjusted to this scenario or even questioning its ability to inform appropriately entities’ financial situation before the crisis occurred. So, our purpose was to verify if during economic crises listed companies in the Brazilian capital market tended to adopt earnings management (EM) practices. Our sample consisted in 3,772 firm-years observations, in 13 years – 1997 to 2009. We developed regression models considering discretionary accruals as EM proxy (dependent variable), crisis as a macroeconomic factor (dummy variable of interest), ROA, market-to-book, size, leverage, foreign direct investment (FDI) and sector as control variables. Different for previous EM studies two approaches were used in data panel regression models and multiple crises were observed simultaneously. Statistics tests revealed a significant relation between economic crisis and EM practices concerning listed companies in Brazil in both approaches used. |
| first_indexed | 2024-03-12T09:03:24Z |
| format | Article |
| id | doaj.art-23e27112898749088c223befa37c60e6 |
| institution | Directory Open Access Journal |
| issn | 0034-7590 2178-938X |
| language | English |
| last_indexed | 2024-03-12T09:03:24Z |
| publishDate | 2014-05-01 |
| publisher | Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo |
| record_format | Article |
| series | RAE: Revista de Administração de Empresas |
| spelling | doaj.art-23e27112898749088c223befa37c60e62023-09-02T15:27:10ZengFundação Getulio Vargas, Escola de Administração de Empresas de São PauloRAE: Revista de Administração de Empresas0034-75902178-938X2014-05-01543268283EARNINGS MANAGEMENT AND ECONOMIC CRISES IN THE BRAZILIAN CAPITAL MARKETAldy Fernandes da Silva 0Elionor Farah Jreige Weffort1Eduardo da Silva Flores2Glauco Peres da Silva Eduardo da Silva Flores3 Professor at Programa de Mestrado em Ciências Contábeis, Fundação Escola de Comércio Álvares Penteado, São Paulo, SP – BrazilProfessor at Programa de Mestrado em Ciências Contábeis, Fundação Escola de Comércio Álvares Penteado, São Paulo, SP – Brazil Professor at Fundação Escola de Comércio Álvares Penteado, São Paulo, SP – Brazil Researcher at Faculdade de Filosofia, Letras e Ciências Humanas, Universidade de São Paulo, SP – BrazilThe 2008 economic crisis challenged accounting, either demanding recognition and measurement criteria well adjusted to this scenario or even questioning its ability to inform appropriately entities’ financial situation before the crisis occurred. So, our purpose was to verify if during economic crises listed companies in the Brazilian capital market tended to adopt earnings management (EM) practices. Our sample consisted in 3,772 firm-years observations, in 13 years – 1997 to 2009. We developed regression models considering discretionary accruals as EM proxy (dependent variable), crisis as a macroeconomic factor (dummy variable of interest), ROA, market-to-book, size, leverage, foreign direct investment (FDI) and sector as control variables. Different for previous EM studies two approaches were used in data panel regression models and multiple crises were observed simultaneously. Statistics tests revealed a significant relation between economic crisis and EM practices concerning listed companies in Brazil in both approaches used.http://rae.fgv.br/sites/rae.fgv.br/files/artigos/earnings_management_and_economic_crises_in__the_brazilian_capital_market.pdfEarnings managementmacroeconomic factorseconomic crisesemerging capital marketsBrazil |
| spellingShingle | Aldy Fernandes da Silva Elionor Farah Jreige Weffort Eduardo da Silva Flores Glauco Peres da Silva Eduardo da Silva Flores EARNINGS MANAGEMENT AND ECONOMIC CRISES IN THE BRAZILIAN CAPITAL MARKET RAE: Revista de Administração de Empresas Earnings management macroeconomic factors economic crises emerging capital markets Brazil |
| title | EARNINGS MANAGEMENT AND ECONOMIC CRISES IN THE BRAZILIAN CAPITAL MARKET |
| title_full | EARNINGS MANAGEMENT AND ECONOMIC CRISES IN THE BRAZILIAN CAPITAL MARKET |
| title_fullStr | EARNINGS MANAGEMENT AND ECONOMIC CRISES IN THE BRAZILIAN CAPITAL MARKET |
| title_full_unstemmed | EARNINGS MANAGEMENT AND ECONOMIC CRISES IN THE BRAZILIAN CAPITAL MARKET |
| title_short | EARNINGS MANAGEMENT AND ECONOMIC CRISES IN THE BRAZILIAN CAPITAL MARKET |
| title_sort | earnings management and economic crises in the brazilian capital market |
| topic | Earnings management macroeconomic factors economic crises emerging capital markets Brazil |
| url | http://rae.fgv.br/sites/rae.fgv.br/files/artigos/earnings_management_and_economic_crises_in__the_brazilian_capital_market.pdf |
| work_keys_str_mv | AT aldyfernandesdasilva earningsmanagementandeconomiccrisesinthebraziliancapitalmarket AT elionorfarahjreigeweffort earningsmanagementandeconomiccrisesinthebraziliancapitalmarket AT eduardodasilvaflores earningsmanagementandeconomiccrisesinthebraziliancapitalmarket AT glaucoperesdasilvaeduardodasilvaflores earningsmanagementandeconomiccrisesinthebraziliancapitalmarket |