Earnings Management around Research and Development Manipulation
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 2
Abstract
The aim of this paper is to investigate the impact of research and development investment (R&D) on managers’ behaviour. Specifically, considering that R&D is a specific investment, inherently exposed to a high level of uncertainty and high information asymmetry and that R&D accounting choices are a controversial issue, the current study tries to evaluate R&D effect on earnings management. The study is conducted on a sample of French companies investing heavily in R&D and accounting data are collected from the Worldscope database. The earning management is estimated through the discretionary accruals. Results indicate that R&D favours both incentive and ability for managers’ earnings management.
Authors and Affiliations
Rihab Guidara, Younes Boujelbene
Keywords
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- EP ID EP131581
- DOI 10.6007/IJARAFMS/v4-i2/765
- Views 76
- Downloads 0
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