An analysis of Earning Management and Manager's Behavior towards Earnings in the Banking Industry (Guaranty Trust Bank) Sierra Leone, West Africa

Earnings management is the deliberate manipulation of the financial reporting process for one's own benefit. The majority of managers want to increase their ability to falsify financial statements. It explained the classification of earning management into two main groups: accrual earning management and real earning management. It also explains the three techniques managers use to perform earning management: sales manipulation, overproduction, and reduction of discretionary expenditure. The objective of this study is to analyze managers' behavior towards earning at Guaranty Trust Bank Sierra Leone Limited (purpose of earning management, the method used to control earning management, parties that influence earning management, and parties affected by earning management). Several companies, like Enron Corporation, World.com, and Walt Disney Company engaged in earning management to defraud stakeholders. The populations of the study were senior staff of Guaranty Trust Bank Sierra Leone, limited to 2020 to date. The study is based on primary and secondary data. Secondary data were published in journals and articles. A total of 50 questionnaires were issued to Guaranty Trust Bank Sierra Leone Limited's senior staff through Google Forms, and 20 articles and journals were reviewed accordingly. The data were analyzed using SPSS and presented in the form of a chart. The results show that the purpose of earning management is to mislead shareholders, and proper audit measures are the best way to control earnings. Also, shareholders are greatly affected by earning management fraud.