Future of earnings management research: Comprehensive literature review on real earnings management

The purpose of this article is to provide a comprehensive literature review pertaining to real earnings management (REM) since 2006. It highlights the development of REM research, its antecedents, and consequences and indicates avenues for future research. A structured literature review of articles related to REM was carried out by investigating articles published during the period 2006-2018, with the exception of the recent articles. Although the literature has a fair share of studies on REM, they are predominately related to developed economies. Researchers in the future must examine the REM in the context of emerging economies such as India and China. It is observed that most of the existing research has emphasized the factors leading to REM or its consequences. However, there is a need for experimental research to understand the behavioral aspects of managers engaging in REM and the potential environmental interactions between these components. The findings of this study would provide valuable insights to researchers and scholars to engage in future earnings management research.