The Impacts Of Arnings Management As An Aggressıve Accounting Technique On The Accounting Data Quality

Yıl 2014, Cilt: 23 Sayı: 1, 75 - 88, 12.10.2014

Metin Uyar

Öz

Although aggressive accounting techniques are phenomena developed in accounting literature, it was not discussed sufficiently how such methods affect the quality of the data produced by the accounting information system. In this study, analyses were conducted as to the effects of earnings management as an aggressive accounting application on the accounting data quality. In the study, the hypotheses were revealed in line with the literature analyses. In this sense, discretionary accruals, small positive earnings and income smoothing as the dimensions of the earnings management and profit quality as an indicator of the data quality are included in the regression analyses. As a result of the analyses, it was determined that there are undesired effects on the data quality from inclining towards earnings management techniques. The accounting data quality is dragged to low with earnings management and in this manner, the value of the data presented to the users of the financial statements decrease. Evaluations are revealed for the executors and researchers in line with the findings obtained.

Anahtar Kelimeler

Data quality, accounting information system, earnings management, profit quality, aggressive accounting

Kaynakça

• Al-Attar, A., Hussain, S. & Zuo L. Y. (2008). Earnings Quality, Bankruptcy Risk and Future Cash Flows, Accounting and Business Research, 38 (1), 5-20. Anthony, R. S., Reese, J.S. & Herrenstein, J.H. (1994). Accounting Text and Case, NY, Irwin Press. Ayres, F.L, (1994), Perception of Earnings Quality, What Managers Need To Know, Management Accounting, 79, 27-30. Bellovary, J. L., Giacomino, D. E. & Akers, M. D. (2005). Earnings Quality, It’s Time to Measure and Report, The Certificated Public Accountant Journal, 75, 32-37. Barth, M. E., Landsman, W. R., & Lang, M. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46(3), 467-498. Bartov, E., Goldber, S., & Kim, M. (2005). Comparative value relevance among German, US, and international accounting standards: A German stock market perspective. Journal of Accounting, Auditing, and Finance, 20(2), 95-119. Bartov, E., Gul, F. A., & Tsui, J. S. L. (2001). Discretionary-accruals models and audit qualifications. Journal of Accounting and Economics, 30(3), 421-452. Bauman, C., Bauman, M. & R. Halsey (2001). Do Firms Use the Deferred Tax Asset Valuation Allowance to Manage Earnings?,” Journal of American Taxation Association, 23 (Supplement), 27-48. Beneish, M.D. (1997). Detecting GAAP Violation: Implications for Assesing Earnings Management among Firms with Extreme Financial Performance. Journal of Accounting and Public Policy, 16, 271-309. Becker, C., DeFond, M., Jiambalvo, J., & Subramanyam, K. (1998). The effect of audit quality on earnings management, Comtemporary Accounting Research, 15(1), 1-24. Breton, G. & Taffler, R.J., (1995), Creative accounting and investment analyst response, Accounting and Business Research, 25(98), 81-92. Burgstahler, D., Hail, L., & Leuz, C. (2006). The importance of reporting incentives: Earnings management in European private and public firms. The Accounting Review, 81(5), 983-1016. Cahan, S. F., Liu, G., & Sun, J. (2008). Investor protection, income smoothing, and earnings informativeness. Journal of International Accounting Research, 7(1), 1-24. Chen, H., Tang, Q., Jiang, Y., & Lin, Z. (2010). The role of international financial reporting standards in accounting quality: Evidence from the European Union. Journal of International Financial Management and Accounting, 21(3), 220-278. Cheng, Q., & Warfield, T. (2005). Equity incentives and earnings management. The Accounting Review, 80(2), 441-476. Chin, C. L., Chen, Y. J., & Hsieh, T. J. (2009). International diversification, ownership structure, legal origin, and earnings management: Evidence from Taiwan. Journal of Accounting, Auditing, and Finance, 24(2), 233-362. Christensen, H., Lee, E., & Walker, M. (2008). Incentives or standards: What determines accounting quality changes around IFRS adoption? Working Paper, Manchester Accounting and Finance Group and Manchester Business School. Dechow, P.M. & Skinner, D.J. (2000). Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators. Accounting Horizons, 14 (2), 235-250. Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. The Accounting Review, 70(2), 193-226. Fischer, M., & Rosenzweig, K. (1995). Attitudes of students and accounting practitioners concerning the ethical acceptability of earnings management. Journal of Business Ethics, 14(6), 433-444. International Accounting Standards 8: Accounting Policies, Changes in Accounting Estimates and Errors Huang, H.T., Lee, Y. W. & Wang, R. Y. (1999) Quality Information and Knowledge, NJ, Prentice Hall. Hunton, J.E., Wright, A.M. & Sally Wright (2004) Are Financial Auditors Overconfident in Their Ability to Assess Risks Associated with Enterprise Resource Planning Systems?, Journal of Information Systems, 18(2), 7-28. Healy, P.M. & Wahlen, J.M (1999) A Review of the Earnings Management Literature and Its Implications for Standard Setting, Accounting Horizons, 13(4), 365-383. Jones, K. L., Krishnan, G. V., & Melendrez, K. D. (2008). Do models of discretionary accruals detect actual cases of fraudulent and restated earnings? An empirical analysis. Contemporary, Accounting Research, 25(2), 499-531. Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33(3), 375-400. Kothari, S. P., Leone, A., & Wasley, C. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163-197. Lang, M., Raedy, J., & Yetman, M. (2003). How representative are firms that are cross listed in the United States? An analysis of accounting quality. Journal of Accounting Research, 41, 363-386. Lang, M., Raedy, J., & Wilson, W. (2006). Earnings management and cross listing: Are reconciled earnings comparable to US earnings? Journal of Accounting and Economics, 42(1/2), 255-283. Liu, C., & O’Farrell, G. (2011). Comparability and convergence between IASB-IFRS and regional-IFRS. International Journal of Business, Accounting, and Finance, 5(1), 27-42. Özer, G. & Uyar, M., (2010).Muhasebe Bilgi Sisteminde Veri Kalitesi ve Finansal Raporlara Yansıması”, 9. Ulusal İşletmecilik Kongresi Bildiriler Kitabı, 310-317. Paananen, M., & Lin, H. (2009). The development of accounting quality of IAS and IFRS over time: The case of Germany. Journal of International Accounting Research, 8(1), 31-55. Reynolds, J. K., & Francis, J. R. (2000). Does size matter? The influence of large clients on office-level auditor reporting decisions. Journal of Accounting and Economics, 30(3), 375-400. Schipper, K., 1989, Commentary on Earnings Management, Accounting Horizons, (December), 91-102. Stlowy, H., & Breton, G. (2004). Accounts manipulation: A literature review and proposed conceptual framework, Review of Accounting and Finance, 3(1), 5-66. Strong, D. M., Lee, Y. W. & Wang, R. Y. (1997) Data Quality Context, Communications of ACM, (40)5, 103-110. Teoh, S. H., Welch, I., & Wong, T. J. (1998). Earnings management and the long-run market performance of initial public offerings. The Journal of Finance, 53(6), 1935-1974. Van Tendeloo, B., & Vanstraelen, A. (2005). Earnings management under German GAAP versus IFRS. European Accounting Review, 14(1), 101-126. Wang, D. (2006). Founding family ownership and earnings quality. Journal of Accounting Research, 44(3), 619-656.