Wykrywanie malowania zysków dokonywanego w celu unikania strat
Detecting earnings management to avoid losses

Summary/Abstract: The aim of the paper is to answer the question whether managers of Polish listed companies practice earnings management to avoid losses. Results of previous research have shed some light on this problem and give the reason to suspect that earnings management is practiced in Poland. The data consist of nonrandom sample of financial statements of Polish companies listed on Warsaw Stock Exchange and regulated offexchange market (CeTO). The study includes 1872, i.e. all available, observations on the Notoria databases from the years 1992-2003. Banks, insurance companies, NFI and companies rendering financial services were excluded. Earnings management is the pervasive phenomenon. It is estimated that about 57% of companies with small premanaged losses manage earnings to create positive earnings. It is 1,7%-5,2% of companies in the sample or 9%-26% of all companies reporting net loss.

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