An empirical analysis of earnings management in Australia

This is a comprehensive large-sample study of Australian earnings management. Using a sample of 4,844 firm-year observations across nine Australia industries from 2000 to 2006, we find substantial corporate earnings management activity across several Australian industries. We document strong evidenc...

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Main Authors: Sun, Lan, Rath, Subhrendu
Format: Working Paper
Published: School of Economics and Finance, Curtin Business School 2008
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/14892
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author Sun, Lan
Rath, Subhrendu
author_facet Sun, Lan
Rath, Subhrendu
author_sort Sun, Lan
building Curtin Institutional Repository
collection Online Access
description This is a comprehensive large-sample study of Australian earnings management. Using a sample of 4,844 firm-year observations across nine Australia industries from 2000 to 2006, we find substantial corporate earnings management activity across several Australian industries. We document strong evidence of size and return on assets being primary determinants of earnings management in Australia. The effects of size and return on assets are also found to be dominant in both income-increasing and income-decreasing earnings manipulation. We also document that that periphery sector firms are more likely to involve larger magnitude of earnings management than firms in the core sector.
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institution Curtin University Malaysia
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publishDate 2008
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spelling curtin-20.500.11937-148922017-10-02T02:27:29Z An empirical analysis of earnings management in Australia Sun, Lan Rath, Subhrendu dual economy sector Earnings management income-increasing/decreasing manipulation discretionary accruals This is a comprehensive large-sample study of Australian earnings management. Using a sample of 4,844 firm-year observations across nine Australia industries from 2000 to 2006, we find substantial corporate earnings management activity across several Australian industries. We document strong evidence of size and return on assets being primary determinants of earnings management in Australia. The effects of size and return on assets are also found to be dominant in both income-increasing and income-decreasing earnings manipulation. We also document that that periphery sector firms are more likely to involve larger magnitude of earnings management than firms in the core sector. 2008 Working Paper http://hdl.handle.net/20.500.11937/14892 School of Economics and Finance, Curtin Business School fulltext
spellingShingle dual economy sector
Earnings management
income-increasing/decreasing manipulation
discretionary accruals
Sun, Lan
Rath, Subhrendu
An empirical analysis of earnings management in Australia
title An empirical analysis of earnings management in Australia
title_full An empirical analysis of earnings management in Australia
title_fullStr An empirical analysis of earnings management in Australia
title_full_unstemmed An empirical analysis of earnings management in Australia
title_short An empirical analysis of earnings management in Australia
title_sort empirical analysis of earnings management in australia
topic dual economy sector
Earnings management
income-increasing/decreasing manipulation
discretionary accruals
url http://hdl.handle.net/20.500.11937/14892