Template-Type: ReDIF-Article 1.0
Author-Name: Anis Ben Amar
Author-Workplace-Name: Faculty of Economics and Business, Universiti  Kebangsaan Malaysia, 43600, Bangi, Selangor
Author-Email: anis_benamar@voila.fr
Author-Name: Ezzeddine Abaoub
Author-Workplace-Name: Faculty of Economics Sciences and Management of Tunis, University of Tunis El Manar C.P. 2092 Tunis, El Manar – Tunisia
Title: Earnings Management Thresholds: The Case in Tunisia
Abstract: Degeorge, Patel and Zeckhauser (1999) show that companies willingly manage their earnings with the aim of meeting or exceeding three earnings targets: zero earnings, last period’s earnings, and analysts' earnings forecasts. In this paper, we focus on earnings management designed to achieve the above earnings thresholds within the framework of the Tunisian market. Applying Burgstahler and Dichev’s (1997) methodology type to the annual data corresponding to the period from 1997 to 2004, our results indicate that Tunisian companies managed earnings to avoid losses and earnings decreases rather than to avoid negative earnings surprises.
Journal: Asian Academy of Management Journal of Accounting and Finance
Keywords: Earnings management, earnings thresholds, earnings distributions
Classification-JEL: M41
Pages: 35-56
Volume: 6
Issue: 2
Year: 2010
File-URL: http://web.usm.my/journal/aamjaf/vol 6-2-2010/6-2-3.pdf
File-Format: Application/pdf
Handle: RePEc:usm:journl:aamjaf00602_35-56