Political–economic instability and earnings management in an emerging market: the case of the 2016 Presidential Impeachment in Brazil

IF 2.3 Q2 BUSINESS, FINANCE

Asian Review of Accounting Pub Date : 2023-01-05 DOI:10.1108/ara-06-2022-0154

Douglas Andrade, D. Viana, V. Ponte, S. Domingos

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引用次数: 0

Abstract

PurposeThis study analyzes earnings management among Brazilian public firms during the 2016 Presidential Impeachment.Design/methodology/approachThe sample comprises, as a treatment group, 721 firm-quarter observations relating to Brazilian listed firms. It also considers a control group of listed firms from Mexico, which were not affected by the exogenous shock analyzed (i.e. the 2016 Presidential Impeachment in Brazil). The firms' quarterly financial data cover the period between 2013 and 2018.FindingsConsidering several proxies related to earnings management by accruals, the main findings suggest a negative relationship between the 2016 impeachment event and the level of discretionary accruals, suggesting that Brazilian firms tended to reduce their earnings management levels during the impeachment process. The results are robust whether the control group is considered or not.Originality/valueThis study brings new empirical evidence to the literature on accounting information quality about the role of the economic and political environment in earnings management, especially in weak institution countries characterized by institutional voids and higher levels of corruption.

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新兴市场的政治经济不稳定与盈余管理:以2016年巴西总统弹劾为例

目的本研究分析了2016年总统弹劾期间巴西上市公司的盈余管理。设计/方法/方法作为一个处理组，样本包括721个与巴西上市公司有关的公司季度观察结果。它还考虑了一个由墨西哥上市公司组成的控制集团，这些公司没有受到所分析的外部冲击（即2016年巴西总统弹劾案）的影响。这些公司的季度财务数据涵盖了2013年至2018年期间。考虑到与应计盈余管理相关的几个指标，主要调查结果表明，2016年弹劾事件与可自由支配应计盈余水平之间存在负相关，表明巴西公司在弹劾过程中倾向于降低其盈余管理水平。无论是否考虑控制组，结果都是稳健的。原创性/价值本研究为会计信息质量文献提供了新的实证证据，证明经济和政治环境在盈余管理中的作用，特别是在以制度空白和腐败程度较高为特征的制度薄弱国家。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asian Review of Accounting BUSINESS, FINANCE-

CiteScore

3.20

自引率

25.00%

发文量

期刊介绍： Covering various fields of accounting, Asian Review of Accounting publishes research papers, commentary notes, review papers and practitioner oriented articles that address significant international issues as well as those that focus on Asia Pacific in particular.Coverage includes but is not limited to: -Financial accounting -Managerial accounting -Auditing -Taxation -Accounting information systems -Social and environmental accounting -Accounting education Perspectives or viewpoints arising from regional, national or international focus, a private or public sector information need, or a market-perspective or social and environmental perspective are greatly welcomed. Manuscripts that present viewpoints should address issues of wide interest among accounting scholars internationally and those in Asia Pacific in particular.