SciELO - Scientific Electronic Library Online

 
vol.23 issue45Social power of preadolescent childrenon influence in their mothers’ purchasing behavior: Initial study in Peruvian toy storesA bibliometric analysis of venture capital research author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Services on Demand

Journal

Article

Indicators

  • Have no cited articlesCited by SciELO

Related links

  • Have no similar articlesSimilars in SciELO

Share


Journal of Economics, Finance and Administrative Science

Print version ISSN 2077-1886

Abstract

CORNEJO-SAAVEDRA, Edinson Edgardo. Earnings management para evitar reportar pérdidas: Chile, 2010-2014. Journal of Economics, Finance and Administrative Science [online]. 2018, vol.23, n.45, pp.167-181. ISSN 2077-1886.  http://dx.doi.org/10.1108/JEFAS-11-2017-0107.

Purpose - This paper aims to examine whether a sample of non-financial Chilean firms performed earnings management to avoid the decreases and losses in the earnings during the 2010-2014 period. Design/methodology/approach - The analysis is undertaken using the distributións of earnings changes and earnings, according to Burgstahler and Dichev (1997) methodology. Findings - The results showed unusually low frequencies of small losses and small declines in earnings and unusually high frequencies of small benefits and small increases in earnings. Both results were statistically significant. Practical implicatións - The study presents evidence of possible earnings management activity to avoid reporting losses and earnings decreases during the period 2010-2014. These results would allow to identify "suspicious" companies of earnings management and would increase the likelihood of detecting firms that managed upside the reported earnings or that - in an extreme case - wouldbecommittingafraudnot disclosed. Originality/value - The results of these types of studies would be useful to carry out monitoring and control activities, to increase transparency in the stock market.

Keywords : Earnings management; Losses; Earnings; Frequency distributión; Profit threshold.

        · abstract in Spanish     · text in English     · English ( pdf )

 

Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License