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Does financial crisis impact earnings management? Evidence from Turkey
Author(s) -
Türegün Nida
Publication year - 2020
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22418
Subject(s) - accrual , earnings management , financial crisis , business , earnings , accounting , period (music) , emerging markets , financial system , economics , monetary economics , finance , macroeconomics , physics , acoustics
This study attempts to display the impact of global financial crisis of 2008 on earnings management (EM) compare with the period before and after with the case of listed manufacturing firms in Borsa Istanbul for the period of 2007–2012. Furthermore, it deepens the EM literature by concentrating on an emerging economy. Discretionary accruals (DA) were computed using the modified Jones model as a measure of EM. Moreover, this study examines EM behavior by separating firms into firms with positive and negative DA. The results of this study registered a high level of EM in firms throughout the postcrisis period.