دانلود رایگان مقاله انگلیسی ویژگی های شرکت و سطح کشور به عنوان تعیین کننده های مدیریت درآمد - تیلور و فرانسیس 2017

Abstract

This paper analyses firm- and country-level determinants of the earnings management for a sample of Latin American companies from 1997 to 2015 by using panel data to deal with the endogeneity and heterogeneity problems. Results show that dividend pay-outs impact positively on earnings management. The ownership structure, however is a double-edged sword as a controlling mechanism which may constrain earnings manipulation, but may also exacerbate it. Concerning country-level variables, we found that the development of the financial system behaved opposite of expectation. Consequently, before inefficient financial markets in Latin America, managers had more room for manipulation of financial statements. The legal and regulatory system, however, proved itself to be efficient in reducing the opportunistic behaviour of managers.

5. Conclusions

In this paper we analysed the impact of firm- and country-level determinants on the managerial discretionary behaviour for a sample of companies from Argentina, Brazil, Chile, Colombia, Mexico, and Peru. To the best of our knowledge, this is perhaps the first work in studying the relationship between this set of variables on the earnings management for a sample of representative firms from Latin American countries.

The varying efficiency of controlling mechanisms in the region is reflected in the way in which accounting discretion is performed. An example of this is the dividend policy, which states that to meet the demand for dividends by shareholders, managers are motivated to manipulate accounting information to meet the required dividends. Similarly, ownership structure is a doubleedged sword as a controlling system in the region. We observe that the insider ownership might constrain earnings management up to a certain extent, but it also may stimulate opportunistic behaviour of managers to manipulate financial reporting. The impact of these two determinants on earnings management highlights the need for further improvements of efficient monitoring mechanisms at the firm level.