The effects of religiosity on real earnings management decision under obedience pressure

Abstract

This paper examines the effects of obedience pressure on real earnings management. This study also investigates whether the association between obedience pressure and real earnings management is moderated by individual’s religiosity level. This study found that individuals under obedience pressure were more likely to perform real earnings management than control group. However, religiosity did not significantly mitigate the association between obedience pressure and real earnings management. There is no significant effect of individual’s religiosity level on real earnings management decision.