Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based review
Abstract The present paper reviews the extant literature on Earnings Management (EM) in emerging economies using the integrated ‘Antecedents Decisions Outcomes (ADO)–Theory, Context, and Methods (TCM)’ framework to identify the firm-level and country-level factors influencing EM practices in these e...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2024-06-01
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| Series: | Future Business Journal |
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| Online Access: | https://doi.org/10.1186/s43093-024-00361-1 |
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| author | Manasi Gokhale Deepa Pillai |
| author_facet | Manasi Gokhale Deepa Pillai |
| author_sort | Manasi Gokhale |
| collection | DOAJ |
| description | Abstract The present paper reviews the extant literature on Earnings Management (EM) in emerging economies using the integrated ‘Antecedents Decisions Outcomes (ADO)–Theory, Context, and Methods (TCM)’ framework to identify the firm-level and country-level factors influencing EM practices in these economies. Considering the increasing share of emerging economies in global Foreign Direct Investment and their unique institutional settings and opaque reporting environment, this review seeks to identify the key perspectives of EM studies in these economies. This review analyses 96 articles from 50 journals published between the period 2003 and 2021. Concentrated ownership structures at the firm level, weak regulatory mechanisms for investor protection, low level of enforcement, and culture at the country level are identified as key determinants influencing EM practices in emerging economies. The review finds a dearth of studies integrating the agency, institutional, and organizational theories which will help in better understanding the phenomena of EM in emerging economies. The review also identifies a contextual gap in terms of the need for more multi-country studies within the emerging economies which will provide a better insight into the diverse formal and informal institutions that shape incentives for EM in these economies. Similarly, there is a need to adopt a qualitative and mixed methods approach to study this phenomenon which helps strengthen the theoretical framework for studying EM in emerging economies. |
| format | Article |
| id | doaj-art-5c304de2a67a48b781dc1d50fd4269a3 |
| institution | OA Journals |
| issn | 2314-7202 2314-7210 |
| language | English |
| publishDate | 2024-06-01 |
| publisher | SpringerOpen |
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| series | Future Business Journal |
| spelling | doaj-art-5c304de2a67a48b781dc1d50fd4269a32025-08-20T01:51:39ZengSpringerOpenFuture Business Journal2314-72022314-72102024-06-0110111610.1186/s43093-024-00361-1Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based reviewManasi Gokhale0Deepa Pillai1Symbiosis International (Deemed) UniversitySymbiosis School of Banking and Finance, Symbiosis International (Deemed) UniversityAbstract The present paper reviews the extant literature on Earnings Management (EM) in emerging economies using the integrated ‘Antecedents Decisions Outcomes (ADO)–Theory, Context, and Methods (TCM)’ framework to identify the firm-level and country-level factors influencing EM practices in these economies. Considering the increasing share of emerging economies in global Foreign Direct Investment and their unique institutional settings and opaque reporting environment, this review seeks to identify the key perspectives of EM studies in these economies. This review analyses 96 articles from 50 journals published between the period 2003 and 2021. Concentrated ownership structures at the firm level, weak regulatory mechanisms for investor protection, low level of enforcement, and culture at the country level are identified as key determinants influencing EM practices in emerging economies. The review finds a dearth of studies integrating the agency, institutional, and organizational theories which will help in better understanding the phenomena of EM in emerging economies. The review also identifies a contextual gap in terms of the need for more multi-country studies within the emerging economies which will provide a better insight into the diverse formal and informal institutions that shape incentives for EM in these economies. Similarly, there is a need to adopt a qualitative and mixed methods approach to study this phenomenon which helps strengthen the theoretical framework for studying EM in emerging economies.https://doi.org/10.1186/s43093-024-00361-1Emerging economiesEarnings managementEarnings qualityAccounting manipulationsFramework based reviewADO–TCM-framework |
| spellingShingle | Manasi Gokhale Deepa Pillai Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based review Future Business Journal Emerging economies Earnings management Earnings quality Accounting manipulations Framework based review ADO–TCM-framework |
| title | Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based review |
| title_full | Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based review |
| title_fullStr | Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based review |
| title_full_unstemmed | Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based review |
| title_short | Firm level and country level determinants of earnings management in emerging economies: a systematic framework-based review |
| title_sort | firm level and country level determinants of earnings management in emerging economies a systematic framework based review |
| topic | Emerging economies Earnings management Earnings quality Accounting manipulations Framework based review ADO–TCM-framework |
| url | https://doi.org/10.1186/s43093-024-00361-1 |
| work_keys_str_mv | AT manasigokhale firmlevelandcountryleveldeterminantsofearningsmanagementinemergingeconomiesasystematicframeworkbasedreview AT deepapillai firmlevelandcountryleveldeterminantsofearningsmanagementinemergingeconomiesasystematicframeworkbasedreview |