Recent high-profile bankruptcies have renewed attention to earnings management practices. This study investigates whether high publicity of corporate bankruptcies makes a difference in the ethical perception of these practices. A survey depicting actual earnings management scenarios was administered to business students before and after these bankruptcies. The results showed a significant increase in the negative perception of earnings management actions after high publicity of unethical corporate behavior. In addition, many demographic factors such as age, experience and college major played a role in business students’ perception of the ethics of earnings management. The study suggests that business students are influenced by actual unethical examples of earnings management. These results, along with demographic differences, have implications for accounting education and the accounting profession.
Elias, R. (2004), "THE EFFECT OF MEDIA PUBLICITY ON BUSINESS STUDENTS’ PERCEPTION OF EARNINGS MANAGEMENT", Lehman, C., Tinker, T., Merino, B. and Neimark, M. (Ed.) Re-Inventing Realities (Advances in Public Interest Accounting, Vol. 10), Emerald Group Publishing Limited, Bingley, pp. 83-103. https://doi.org/10.1016/S1041-7060(04)10005-9Download as .RIS
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