The Size of a Company and the Intensity of Use of Accrual-Based Earnings Management and Real Earnings Management Tools
| 02 kwi 2024
Data publikacji: 02 kwi 2024
Zakres stron: 115 - 132
Otrzymano: 01 wrz 2023
Przyjęty: 01 gru 2023
DOI: https://doi.org/10.2478/ers-2024-0006
Słowa kluczowe
© 2024 Michał Comporek, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
Subject and purpose of work:
The aim of the study is to analyse the relationship between the degree of use of accrual-based earnings management and real earnings management instruments and the size of public companies.
Materials and methods:
The empirical analyses are based on the results of a survey of finance and accounting professionals representing 124 non-financial companies listed on the Warsaw Stock Exchange. The Kruskal-Wallis test (along with tests of intergroup comparisons) was considered the primary method for assessing the relationships occurring between the variables considered.
Results:
The research showed that the intensity of using accrual-based earnings management and real earnings management tools is statistically dependent on both the value of generated net revenues from the sale of products, goods and materials and the value of total assets of a given company. However, a greater diversification of the values of variables describing the degree of use of earnings management instruments was recorded in individual sub-populations separated on the basis of the value of realised sales.
Conclusions:
The research appears to be relevant from the perspective of a further search for the determinants of financial performance manipulation in the Polish capital market.