Work

Testing for Earnings Management in the U.S. Amid the COVID-19 Pandemic

Year: 2021

Type: article

Abstract: Some forms of earnings management largely disappeared after SOX’s implementation, including cosmetic earnings management and the upward manipulation of income to ensure that reported EPS is rounded up a penny rather than down a cent. Yet, research shows that the incidence of accrual-based earnings management increases during an economic downturn. This raises a question of whether these two types of earnings management might have reappeared in the U.S. during the unique, pandemic-driven recession of 2020. The current study tests this issue and finds no compelling evidence that either of these two easilyachieved forms of earnings management occurred overall in 2020.

Source: Journal of Applied Business and Economics

DOI: 10.33423/jabe.v23i5.4559

Authors: Charles E. Jordan, Stanley J. Clark, Marilyn A. Waldron

Institutions: Florida State University-Panama, Middle Tennessee State University, The University of Sydney

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: bronze

OpenAlex ID: W4200465270

FWCI: 4.198

Cites: 24

Cited by: 14

Related to: 10