Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 15, 2013 erstellt
Beschreibung:
This paper examines the relation between investor protection and real earnings management. We build on the work of La Porta et al. (2000), who found that countries with different legal systems protect investors differently. Using a sample of more than 13,000 unique firms in over 54 countries, for a testing period of 2000–2011, we find evidence that companies in countries that have a lower level of investor protection engage in real earnings management. Our findings contribute to the literature on the quality of financial reporting and the importance of the protection of investors from actions that managers take that deviate from normal business practices