Earnings management: a strategic adaptation or deliberate manipulation?

• Main Authors: Baskaran, S., Nedunselian, N., Mahadi, N., Ng, C. H., Abdul Rasid, S. Z.
• Format: Article
• Published: Emerald Group Publishing Ltd. 2020
• Subjects: HF Commerce
• Online Access: http://eprints.utm.my/id/eprint/88334/; http://www.dx.doi.org/10.1108/JFC-07-2019-0098

This study aims to clarify the relationship between ethical orientation and earnings management perception phenomenon in the organization. It discusses to what extent earnings management is considered as a strategic adaptation or deliberate manipulation in an organization. The study also aims to expand the domain of ethical perspective of earnings management by considering mediating and moderating role of investor sentiment and corporate social responsibility (CSR) as inward pressure and outward commitment surrounding the organization, adopting a combined perspective of strategic management and also accounting discipline than is normally found in the ethics and earnings management literature.