ABSTRACT
In recent decades, earnings management has been part of discussions in accounting and financial literature (Niskanen et al., 2011). The disclosure of information and the quality of the information that is disclosed has also received a lot of attention. Investors must be concerned that the quality of information supplied by firms means, according to Healy and Whalen (1999), that the firm can manage their results in such a way as to confuse investors about their performance or to influence their contracts, based on the accounting numbers. Rafik (2002) states that earnings management is a strategy for the management of the firm and, although it is not illegal, it is considered unethical by the users of financial statements ( Johari et al., 2008; Rafik, 2002).
