Earnings management initiatives and selected characteristics of an entity: a case study of the Visegrad Four
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DOIhttp://dx.doi.org/10.21511/ppm.18(3).2020.03
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Article InfoVolume 18 2020, Issue #3, pp. 28-41
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This paper responds to the current issue of Earnings Management (hereafter EM) initiatives in the Visegrad Four. The aim is to identify EM practices and determine a statistically significant relationship between EM practices and firm size, country, or business sector. The paper contains a literature review, bibliometric analysis, and a description of the methods used in the practical part. Many publications containing the term “EM” in scientific databases, a keyword science map for “EM” publications, a science map of the most cited contributions dealing with EM, a science map of countries with the highest number of cited publications with the term “EM”, and a science map of sources with the highest number of publications with the term “EM” are included. The analysis covers the period from 1900 to 2019. The study is focused on detecting the presence of EM initiatives in the Visegrad Four using the modified Jones model. Results confirmed the EM initiatives in the Czech Republic, Slovak Republic, Poland, and Hungary. Using the one-way ANOVA test, a statistically significant relationship was confirmed between EM practices and firm size, country, and business sector. The study uses a sample of 250 financial statements of entities from each Visegrad Four country for the year 2018. The sample is adjusted for outliers using the IQR method.
Acknowledgment
This paper was financially supported by the Slovak Research and Development Agency – Grant No. APVV-17-0546 Variant Comprehensive Model of Earnings Management in Conditions of The Slovak Republic as an Essential Instrument of Market Uncertainty Reduction.
- Keywords
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JEL Classification (Paper profile tab)M41, M42, G14
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References29
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Tables6
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Figures7
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- Figure 1. Number of publications with the term “Earnings Management” in Social Science Research Network
- Figure 2. Number of publications with the term “Earnings Management” in Web of Science
- Figure 3. Keyword science maps for Earnings Management, 1900–2000
- Figure 4. Keyword science maps for Earnings Management, 2001–2019
- Figure 5. Co-citation analysis – cited authors from 1900 to 2019
- Figure 6. A science map of countries with the highest number of cited publications with the term “Earnings Management” from 1900 to 2019
- Figure 7. A science map of sources with the highest number of publications with the term “Earnings Management” from 1900 to 2019
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- Table 1. The most frequently used calculation methods of EM
- Table 2. Characteristics of the conducted bibliometric analysis
- Table 3. Results of the variables calculation for five selected companies
- Table 4. Criteria for an explanatory power measurement of the model in calculating EM initiatives
- Table 5. Explanatory power of the model used within countries
- Table 6. Hypothesis testing results
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