1st Edition
Earnings Management and Corporate Finance The Importance of Transparent Financial Reporting
Delving into the earnings management process, this book provides profound insights into how profits can be influenced through accounting choices and real business transactions. Real-life case studies will undoubtedly facilitate the understanding of accounting and taxation methods. Additionally, it unravels key elements of corporate finance puzzles related to the transparency of financial reports, including the macroeconomic environment, profit thresholds, cash management, audit quality, financing decisions, and financial health. With broad empirical evidence from various European countries, it multidimensionally explores the important link between the quality of information in financial statements and trade-offs behind financial decisions.
The book serves as a valuable reference for international researchers in corporate finance, accounting, and corporate governance. It is also a powerful tool for business practitioners, including owners, lenders, auditors, regulatory and professional bodies, business partners, or other market participants. For those seeking the latest insights on earnings management, those producing or assessing accounting information, and those using financial reports in their research or business practice, this book is a must-read.
1. Dissecting earnings management strategies: Why, how and when? 2. Long-term earnings management based on fixed assets 3. Creative accounting or earnings management via current assets? 4. Provisions - a small accounting lie in earnings management 5. Taxation: an important tool of earnings management 6. Real earnings management possibilities for managers 7. Impression management and transparent reporting 8. Earnings informativeness during macroeconomic turbulence 9. Profit thresholds and earnings management 10. Cash holdings and transparency of financial reports 11. Does auditing expertise enhance financial reporting quality? 12. Discovering the relationship between financing and earnings management 13. Company financial distress and earnings manipulation
Biography
Joanna Lizińska is associate professor in the Department of Corporate Finance, Poznań University of Economics and Business, Poznań, Poland.
Marzena Remlein is tenured professor in the Department of Accounting and Financial Audit, Poznań University of Economics and Business, Poznań, Poland.
Leszek Czapiewski is associate professor in the Department of Corporate Finance, Poznań University of Economics and Business, Poznań, Poland.