Earnings Management and Quarterly Discretionary Accruals Level in the Brazilian Stock Market
This study aims to investigate the behavior of the quarterly earnings management level of Brazilian public companies. For this purpose, a sample of 107 companies listed on the B3 Brasil Bolsa Balcão S.A. was selected and the quarterly discretionary accruals among 2012 and 2017 were estimated using P...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2019-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123062259006 |
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| author | Rodolfo Maia Rosado Cascudo Rodrigues Clayton Levy Lima de Melo Edilson Paulo |
| author_facet | Rodolfo Maia Rosado Cascudo Rodrigues Clayton Levy Lima de Melo Edilson Paulo |
| author_sort | Rodolfo Maia Rosado Cascudo Rodrigues |
| collection | DOAJ |
| description | This study aims to investigate the behavior of the quarterly earnings management level of Brazilian public companies. For this purpose, a sample of 107 companies listed on the B3 Brasil Bolsa Balcão S.A. was selected and the quarterly discretionary accruals among 2012 and 2017 were estimated using Paulo’s (2007) model as a proxy for earnings management. Next, a second regression with the quarterly discretionary accruals and dummy variables representative of each quarter was used. The results indicate that the magnitude average of discretionary accruals are higher in the fourth and last quarter, and discretionary accruals for the first quarter were significantly different from the second and third quarter. These findings suggest that managers adjust the firm’s performance report more strongly at the end of the year as it becomes the last opportunity to use discretion over accounting numbers with the intent to achieve annual goals |
| format | Article |
| id | doaj-art-970f767d56754505b5a2e64a59e06c40 |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2019-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-970f767d56754505b5a2e64a59e06c402025-02-06T23:39:32ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2019-01-0116329731410.15728/bbr.2019.16.3.6Earnings Management and Quarterly Discretionary Accruals Level in the Brazilian Stock MarketRodolfo Maia Rosado Cascudo RodriguesClayton Levy Lima de MeloEdilson PauloThis study aims to investigate the behavior of the quarterly earnings management level of Brazilian public companies. For this purpose, a sample of 107 companies listed on the B3 Brasil Bolsa Balcão S.A. was selected and the quarterly discretionary accruals among 2012 and 2017 were estimated using Paulo’s (2007) model as a proxy for earnings management. Next, a second regression with the quarterly discretionary accruals and dummy variables representative of each quarter was used. The results indicate that the magnitude average of discretionary accruals are higher in the fourth and last quarter, and discretionary accruals for the first quarter were significantly different from the second and third quarter. These findings suggest that managers adjust the firm’s performance report more strongly at the end of the year as it becomes the last opportunity to use discretion over accounting numbers with the intent to achieve annual goalshttp://www.redalyc.org/articulo.oa?id=123062259006discretionary accrualsearnings managementquarterly statements |
| spellingShingle | Rodolfo Maia Rosado Cascudo Rodrigues Clayton Levy Lima de Melo Edilson Paulo Earnings Management and Quarterly Discretionary Accruals Level in the Brazilian Stock Market BBR: Brazilian Business Review discretionary accruals earnings management quarterly statements |
| title | Earnings Management and Quarterly Discretionary Accruals Level in the Brazilian Stock Market |
| title_full | Earnings Management and Quarterly Discretionary Accruals Level in the Brazilian Stock Market |
| title_fullStr | Earnings Management and Quarterly Discretionary Accruals Level in the Brazilian Stock Market |
| title_full_unstemmed | Earnings Management and Quarterly Discretionary Accruals Level in the Brazilian Stock Market |
| title_short | Earnings Management and Quarterly Discretionary Accruals Level in the Brazilian Stock Market |
| title_sort | earnings management and quarterly discretionary accruals level in the brazilian stock market |
| topic | discretionary accruals earnings management quarterly statements |
| url | http://www.redalyc.org/articulo.oa?id=123062259006 |
| work_keys_str_mv | AT rodolfomaiarosadocascudorodrigues earningsmanagementandquarterlydiscretionaryaccrualslevelinthebrazilianstockmarket AT claytonlevylimademelo earningsmanagementandquarterlydiscretionaryaccrualslevelinthebrazilianstockmarket AT edilsonpaulo earningsmanagementandquarterlydiscretionaryaccrualslevelinthebrazilianstockmarket |