Journal of Corporate Accounting & Finance.
ISSN/ISBN: Not available at this time. DOI: 10.1002/jcaf.22762
Abstract: This paper examines the impact of public awareness and regulatory changes on earnings management over time. Despite scrutiny from regulators, auditors, and investors, the deterrents of earnings management remain unclear. I explore whether public awareness, through the dissemination of research, can influence market behaviors and reduce earnings management activities due to increased detection and penalties. Alternatively, I investigate if stricter regulation plays a role in curbing earnings manipulation. Using Benford’s Law, I apply Thomas’ (1989) approach and compare data from 1950 to 1985, 1990 to 2002, and 2003 to 2020. My findings indicate that while public awareness alone does not deter earnings management, heightened regulation, particularly post-Sarbanes-Oxley Act (SOX), significantly reduces such practices. This study contributes to the literature by highlighting the comparative impact of public awareness and regulatory changes on earnings management.
Bibtex:
@article{,
author = {Tran, Arthur M.},
title = {What Deters Earnings Management? A Benford's Law Comparison Between Publicized Detection Methods and Increased Regulations},
journal = {Journal of Corporate Accounting \& Finance},
volume = {n/a},
number = {n/a},
pages = {},
doi = {https://doi.org/10.1002/jcaf.22762},
url = {https://onlinelibrary.wiley.com/doi/abs/10.1002/jcaf.22762},
}
Reference Type: Journal Article
Subject Area(s): Accounting