Comparison of qualitative and quantitative measures of earnings management: the case of an electricity utility

International Journal of Accounting & Information Management

ISSN: 1834-7649

Article publication date: 2 March 2010

214

Citation

(2010), "Comparison of qualitative and quantitative measures of earnings management: the case of an electricity utility", International Journal of Accounting & Information Management, Vol. 18 No. 1. https://doi.org/10.1108/ijaim.2010.36618aad.020

Publisher

:

Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited


Comparison of qualitative and quantitative measures of earnings management: the case of an electricity utility

Article Type: AMIS statement and abstracts From: International Journal of Accounting and Information Management, Volume 18, Issue 1

Abstract

The paper compares the qualitative and quantitative methods of earnings management. Data are obtained from annual reports of Fiji Electricity Authority (an electricity utility company) to compute discretionary accruals using the modified Jones model. These results are compared with the results based on the qualitative measure from a Master's thesis. The results suggest that the earnings management model requires further developments since the outcome of the two measures differ.

Keywords Quantitative measure, Qualitative measure, Discretionary accruals, Earnings management

Dharmendra Naidu, Pranil Prasad, Arvind Patel and Asha Singh

The University of the South Pacific, Suva, Fiji

Corresponding author

Dharmendra Naidu can be contacted at: naidu_d@usp.ac.fj

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