Earnings management detection through budget execution. Insights from Greek municipalities
Dados Bibliográficos
| ID | 20201699 |
|---|---|
| Autores | Ioanna Malkogianni (0000-0001-5967-3160, International Hellenic University, autor correspondente) |
| Ano | 2024 |
| Volume | 36 |
| Fascículo | 3 |
| Páginas | 320-342 |
| Data de publicação | 2024-07-04 |
| Peer Reviewed | Sim |
| Open Access | Sim |
| Tipo | ARTICLE |
| Periódico | Journal of Public Budgeting Accounting & Financial Management (JOURNAL) |
| Identificadores do periódico | ISSN: 1096-3367 • E-ISSN: 1945-1814 |
| Editora | Emerald (PUBLISHER) |
| DOI | 10.1108/jpbafm-05-2023-0080 |
| OpenAlex | W4390831493 |
| Idioma | EN |
| Referências citadas | 52 |
Purpose This study examines specific budget execution items (as proxies of vulnerability and sustainability) along with political factors to identify earnings management (EM) practices in Greek municipalities. Design/methodology/approach The study employs a sample of 1,831 financial and budget execution statements for the period 2011–2019. EM is proxied by unsigned discretionary accruals that are assessed through the performance-matched modified-Jones model and the modified-Jones model. Findings The findings provide evidence that the municipality’s dependence on subsidies (or its self-sufficiency) affects EM, especially during the pre-election year. Municipalities that maintain their financial autonomy engage less in EM in pre-election years. Lastly, it is proven that electoral cycles, weak opposition and other variables exert an effect on the size of EM. Sensitivity analysis confirms the results. Originality/value This paper contributes to the literature on EM by analyzing for the first time budget execution items (as proxies of vulnerability and sustainability) and their impact on the size of unsigned discretionary accruals
Accrual · Business · Earnings · Earnings Management · Economics · Political science · Politics · Subsidy · Sustainability · Auditing, Earnings Management, Governance · Computer Science · Corporate Taxation and Avoidance · Fiscal Policies and Political Economy · Accounting
Earnings management to avoid earnings decreases and losses
Estimating Standard Errors in Finance Panel Data Sets
The Municipal Accounting Maze
Performance matched discretionary accrual measures
A Review of the Earnings Management Literature and Its Implications for Standard Setting
Proportional appropriation systems and financial statement quality in municipally owned entities
Does financial health influence the re-election of local governments
Political competition as a motivation for earnings management close to zero
Do electoral cycles affect local financial health
Political business cycles at the municipal level
Public spending interactions and local politics. Empirical evidence from French municipalities
Evaluating financial performance in local government
Fiscal and political determinants of local government involvement in public-private partnership (PPP)
Do Top Managers’ Individual Characteristics Affect Accounting Manipulation in the Public Sector
Effective” Number of Parties
Is Local Financial Health Associated with Citizens' Quality of Life
| Velocidade de citação | historical |
|---|---|
| Altamente citado | Não |