Corpus ID: 3528400

Rules-based and principles-based accounting standards and earnings management

@inproceedings{Beest2011RulesbasedAP,
  title={Rules-based and principles-based accounting standards and earnings management},
  author={F. V. Beest},
  year={2011}
}
  • F. V. Beest
  • Published 2011
  • Economics, Physics
  • We examine the effects that discretionary room in accounting standards has on both the level and nature of earnings management decisions. [...] Key Method Manipulations of IAS 32 and 36 are used to represent the rulesbased and the principles-based setting, and different analysts’ expectations act as incentives, creating a 2x2 between-subjects design. In the rules-based setting managers more often sell short-term financial assets, whereas in the principles-based setting managers are more prone to taking…Expand Abstract
    16 Citations

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