Keys to reduce earnings management in emerging markets
This paper examines earnings quality adapted to International Financial Reporting Standards in Mexican emerging capital market and how investor protection and audit quality to override managers’ incentives to engage in earnings management. We evidence that the new accounting regulation could be cons...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2014-09-01
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| Series: | South African Journal of Business Management |
| Online Access: | https://sajbm.org/index.php/sajbm/article/view/133 |
| _version_ | 1811251679232786432 |
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| author | M. Palacios Manzano I. Martínez Conesa H. Garza Sánchez |
| author_facet | M. Palacios Manzano I. Martínez Conesa H. Garza Sánchez |
| author_sort | M. Palacios Manzano |
| collection | DOAJ |
| description | This paper examines earnings quality adapted to International Financial Reporting Standards in Mexican emerging capital market and how investor protection and audit quality to override managers’ incentives to engage in earnings management. We evidence that the new accounting regulation could be considered of high quality financial reporting standard because it is associated with lower earnings management. The analyses also suggest that cross-listed firms have higher quality local generally accepted accounting principles accounting information as measured by earnings management. There is also evidence that earnings of Mexican companies with Big 4 auditors are of higher quality. The results contribute to the ongoing debate on whether high standards are sufficient and effective in countries with weaker investor protection rights. |
| first_indexed | 2024-04-12T16:24:01Z |
| format | Article |
| id | doaj.art-8e1fa62833844c4a934f85d4a5e84d91 |
| institution | Directory Open Access Journal |
| issn | 2078-5585 2078-5976 |
| language | English |
| last_indexed | 2024-04-12T16:24:01Z |
| publishDate | 2014-09-01 |
| publisher | AOSIS |
| record_format | Article |
| series | South African Journal of Business Management |
| spelling | doaj.art-8e1fa62833844c4a934f85d4a5e84d912022-12-22T03:25:28ZengAOSISSouth African Journal of Business Management2078-55852078-59762014-09-01453819510.4102/sajbm.v45i3.133122Keys to reduce earnings management in emerging marketsM. Palacios Manzano0I. Martínez Conesa1H. Garza Sánchez2Department of Accounting and Finance, Faculty of Economics and Business, University of MurciaDepartment of Accounting and Finance, Faculty of Economics and Business, University of MurciaDepartment of Accounting and Finance, Faculty of Economics and Business, University of MurciaThis paper examines earnings quality adapted to International Financial Reporting Standards in Mexican emerging capital market and how investor protection and audit quality to override managers’ incentives to engage in earnings management. We evidence that the new accounting regulation could be considered of high quality financial reporting standard because it is associated with lower earnings management. The analyses also suggest that cross-listed firms have higher quality local generally accepted accounting principles accounting information as measured by earnings management. There is also evidence that earnings of Mexican companies with Big 4 auditors are of higher quality. The results contribute to the ongoing debate on whether high standards are sufficient and effective in countries with weaker investor protection rights.https://sajbm.org/index.php/sajbm/article/view/133 |
| spellingShingle | M. Palacios Manzano I. Martínez Conesa H. Garza Sánchez Keys to reduce earnings management in emerging markets South African Journal of Business Management |
| title | Keys to reduce earnings management in emerging markets |
| title_full | Keys to reduce earnings management in emerging markets |
| title_fullStr | Keys to reduce earnings management in emerging markets |
| title_full_unstemmed | Keys to reduce earnings management in emerging markets |
| title_short | Keys to reduce earnings management in emerging markets |
| title_sort | keys to reduce earnings management in emerging markets |
| url | https://sajbm.org/index.php/sajbm/article/view/133 |
| work_keys_str_mv | AT mpalaciosmanzano keystoreduceearningsmanagementinemergingmarkets AT imartinezconesa keystoreduceearningsmanagementinemergingmarkets AT hgarzasanchez keystoreduceearningsmanagementinemergingmarkets |