The Effect of Other Comprehensive Income Reporting on Accruals-based Earnings Management Activities
The Effect of Other Comprehensive Income Reporting on Accruals-based Earnings Management Activities
Author(s): Artur Sajnóg, Tomasz SosnowskiSubject(s): Economy, Financial Markets, Accounting - Business Administration
Published by: Wydawnictwo Naukowe Uniwersytetu Marii Curie-Sklodowskiej
Keywords: comprehensive income; OCI; earnings management; discretionary accruals
Summary/Abstract: This study examines the impact of other comprehensive income reporting in mitigating earnings management by using discretionary accruals for a sample of 83 industrial WSE-listed companies over the period of 2009–2016. We apply a panel least square model using year fixed-effects regression. We find that other comprehensive income reporting diminishes the extent of managerial earnings activities. Our findings suggest that a comprehensive income statement may have significant and positive implications for preventing aggressive accounting and helps users of financial statements identify earnings management better.
Journal: Annales Universitatis Mariae Curie-Skłodowska, Sectio H Oeconomia
- Issue Year: LII/2018
- Issue No: 3
- Page Range: 127-135
- Page Count: 9
- Language: English, Polish