Earnings Management. The Influence of Real and Accrual-Based Earnings Management on Earnings Quality

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Earnings Management
  • Definition
  • Differences between earnings management and other concepts
    • Fraud
    • Expectation Management
    • Minimization of Reported Earnings
  • Goals and Incentives of Earnings Management
    • Impression Management
    • Maximization of Reported Earnings
    • Income Smoothing
    • Meeting the Target
  • Types of Earnings Management
    • Accrual Earnings Management
    • Real Earnings Management
    • Income Shift
    • Other Accounting Techniques
• Earnings Quality
  • Definition
  • Determinants of Earnings Quality
    • Firm Characteristics
    • Financial Standards
    • Corporate Governance and Controls
    • Auditor Impact
    • Equity Market Incentives and other external factors
  • Classification of Earning Quality
    • Earnings Persistence
    • Accruals
    • Predictability
    • Value Relevance
    • Investor Responsiveness to Earnings
    • Target Beating
    • Smoothness
    • Asymmetric timeliness and timely loss recognition

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This master's thesis examines the influence of both real and accrual-based earnings management on the quality of earnings. The study explores the various definitions and types of earnings management, analyzing its goals and incentives. Additionally, the thesis delves into the determinants of earnings quality, including firm characteristics, financial standards, corporate governance, auditor impact, and external factors. Ultimately, it aims to understand how earnings management impacts the persistence, accruals, predictability, value relevance, and investor responsiveness of earnings.

• Earnings Management: Its Definition, Types, and Incentives
• Earnings Quality: Determinants and Classification
• The Influence of Real and Accrual-Based Earnings Management on Earnings Quality
• Implications for Investors, Regulators, and Corporate Governance
• The Role of Financial Standards and Auditing in Mitigating Earnings Management

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter provides an overview of the research topic, outlining the significance of earnings management and earnings quality in the context of financial reporting. It also introduces the research questions and the structure of the thesis.
• Earnings Management: This chapter defines and clarifies the concept of earnings management, distinguishing it from other related concepts like fraud, expectation management, and minimization of reported earnings. It also explores the various goals and incentives behind earnings management, such as impression management, maximization of reported earnings, income smoothing, and meeting targets.
• Types of Earnings Management: This chapter examines the different types of earnings management, focusing on accrual-based earnings management, real earnings management, income shift, and other accounting techniques. It analyzes the mechanisms and motivations behind each type.
• Earnings Quality: This chapter defines earnings quality and explores its key determinants, including firm characteristics, financial standards, corporate governance, auditor impact, and equity market incentives. It also outlines the different aspects of earnings quality, such as earnings persistence, accruals, predictability, value relevance, investor responsiveness to earnings, and other factors.

Schlüsselwörter (Keywords)

This thesis focuses on the key terms of earnings management, earnings quality, accrual-based earnings management, real earnings management, firm characteristics, financial standards, corporate governance, auditor impact, earnings persistence, accruals, predictability, and value relevance. It explores the relationship between these concepts and their impact on financial reporting and investor decision-making.