Open AccessSurvey Some of the Factors Influencing Ethical Judgments of the Earnings Management
Author(s) -
Mohammad Hossein Vadiei Nowghabi,
Saleh Anbarani
Publication year - 2012
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v2i1.1664
Subject(s) - earnings management , accounting , earnings , affect (linguistics) , business , perception , sample (material) , earnings response coefficient , psychology , actuarial science , chemistry , communication , chromatography , neuroscience
Earnings management is using judgment in reporting financial results and in structuring transactions to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers (Kaplan, 2001).This study investigates the ethical perception of students concerning different earnings management scenarios. A questionnaire is used to measure the ethical perception of the respondents concerning 15 earnings management scenarios. The questionnaire is based on the questionnaire of Merchant (1994) and Fischer and Rosenzweig (1995). Sample including Fields of accounting and non- accounting (management and economics) all the senior students admission to universities public of Iran. The results of the 250 questionnaires indicate that: (1) There is a significant difference between knowledge ethical operating earnings management and accounting earnings management. (2) There is a significant difference between knowledge ethical earnings management that decrease earnings and earnings management that increase earnings. (3) There is a significant difference between knowledge ethical earnings management that affect earnings on a quarterly basis than earnings management that affect earnings on a yearly basis.