Earnings Management: Obvious Phenomenon in Albanian Market.

Fiscal earnings, measures the performance of the company during the financial year. Motivated by different factors such as those related to the capital market, contractual motives etc, managers can manipulate earnings, increasing or reducing them and this phenomenon is recognized as "earnings manage...

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Publicado en:Academicus no. 8; pp. 78 - 89
Autores principales: Llukani, Teuta, Karapici, Vjollca
Formato: Artículo
Publicado: Academicus 2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Earnings Management: Obvious Phenomenon in Albanian Market.
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        au:
          Llukani, Teuta
          Karapici, Vjollca
        affil:
          Faculty of Education and Social Sciences University "Eqrem Çabej, Gjirokastër, Albania
          Faculty of Economy, University of Tirana, Albania
      su:
        Earnings management
        Fiscal policy
        Capital market
        Corporate governance
        Executives
        Albania
      sug:
        subj:
          Albania
          Earnings management
          Fiscal policy
          Capital market
          Corporate governance
          Executives
      keyword:
        Abnormal accruals
        Albanian market
      ab: Fiscal earnings, measures the performance of the company during the financial year. Motivated by different factors such as those related to the capital market, contractual motives etc, managers can manipulate earnings, increasing or reducing them and this phenomenon is recognized as "earnings management". If we accept that the initiatives of "earnings management" lead to distortion of the financial results, it means that financial reports can be considered as poor quality reports, and financial information provided to the users and various parties of interest is also of poor quality. This paper is focused on reviewing the existing literature with regard to the Earnings Management in response to the growing pressure of investors, policy makers, and companies' governance reform mechanisms to curb opportunistic behavior of the managers of these companies. It also examines the existence of this phenomenon in Albanian context as well as tests the importance of Modified Jones Model as an efficient tool for detection of abnormal accruals, used as a proxy for earnings management. The results show that firms in the Albanian market are engaged in earnings management initiatives.
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    language: English
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