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Earnings management: a perspective

Messod D. Beneish (Indiana University, Kelley School of Business, Bloomington, Indiana 47401)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 December 2001

16611

Abstract

Compares three definitions of earnings management used by accounting researchers and three methods of estimating it: aggregate accruals, specific accruals and discontinuities in earnings distribution. Discusses evidence relating to the reasons for income‐increasing earnings management, income‐decreasing earnings management and specific contexts, e.g. financial institutions with regulatory constraints. Concludes that, although the evidence is limited, managers are more likely to manipulate income up rather than down; and identifies some opportunities for further research.

Keywords

Citation

Beneish, M.D. (2001), "Earnings management: a perspective", Managerial Finance, Vol. 27 No. 12, pp. 3-17. https://doi.org/10.1108/03074350110767411

Publisher

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MCB UP Ltd

Copyright © 2001, MCB UP Limited

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