Earnings Management During Financial Crises

dc.contributorAalto Universityen
dc.contributorAalto-yliopistofi
dc.contributor.advisorPham, Ly
dc.contributor.authorLahtinen, Veikka
dc.contributor.departmentLaskentatoimen laitosfi
dc.contributor.schoolKauppakorkeakoulufi
dc.contributor.schoolSchool of Businessen
dc.date.accessioned2024-01-21T17:01:13Z
dc.date.available2024-01-21T17:01:13Z
dc.date.issued2023
dc.description.abstractIn order to make informed decisions, stakeholders must rely on financial statement figures. However, under certain circumstances, managers have strong incentives to use accounting judgment in favor of their own interests, potentially at the expense of other stakeholders. This literature review examines how financial crises affect managers' incentives to engage in earnings management and whether those actions are more prevalent during crises or not. The results indicate that as the business environment changes, some factors incentivize management to report higher-than-actual results, while other factors encourage reporting lower-than-actual results. Simultaneously, several factors encourage leaders to be more transparent than usual. Although the prevalence of earnings management during financial crises has been addressed in numerous studies across the globe, research findings have been highly diverse. Factors like the degree of investor protection, the quality of audit, different crisis stages, and specific firm-related elements such as leverage levels could explain these varying results.en
dc.format.extent20+8
dc.format.mimetypeapplication/pdfen
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/125932
dc.identifier.urnURN:NBN:fi:aalto-202401211604
dc.language.isoenen
dc.programmeLaskentatoimien
dc.subject.keywordearnings managementen
dc.subject.keywordfinancial crisesen
dc.subject.keywordearnings management incentivesen
dc.subject.keywordearnings behaviouren
dc.titleEarnings Management During Financial Crisesen
dc.typeG1 Kandidaatintyöfi
dc.type.ontasotBachelor's thesisen
dc.type.ontasotKandidaatintyöfi

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