Date of Publication

2015

Document Type

Master's Thesis

Degree Name

Master of Science in Accountancy

Subject Categories

Accounting

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Thesis Adviser

Florenz C. Tugas

Defense Panel Chair

Rodiel C. Ferrer

Defense Panel Member

Herminigilda E. Salendrez
Katherine U. Sobremonte

Abstract/Summary

Earnings management has been one of the most widely discussed phenomena. The exercise of managerial discretion and judgment in the financial reporting process has been a way used by some managers to exhibit an opportunistic behavior to mask the true economic performance of an entity and eventually mislead its stakeholders.

I focused on capital market incentives around earnings management in the Philippine setting, covering years 2007-2013. In particular, given the presence of financial statement evidence, I investigated how investors react to evidences of earnings management around the release of SEC Form 17-A. The study also explored two ways to facilitate earnings management- through discretionary accruals and reductions in discretionary expenditures. Results reveal that earnings management either through accounting-based or real-activities based manipulation does not significantly influence cumulative abnormal returns after the release of SEC Form 17-A. This can be attributed to the inherent complexity of the earnings management mechanism and the efficiency of the Philippine Stock Exchange (PSE).

Abstract Format

html

Language

English

Accession Number

TG06555; CDTG006555

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Keywords

Earnings management

Upload Full Text

wf_yes

Download

Share

COinS