EFFECT OF CORPORATE REPUTATION BASED ON ACCOUNTING TRANSPARENCY ON EARNINGS MANAGEMENT OF PUBLIC COMPANIES ON B3

Objective: This study aims to investigate the relationship between corporate reputation and earnings management in public companies listed in Brasil, Bolsa, Balcão (B3). Method: The sample is composed of 231 firms (1,355 observations) of all non-financial companies listed in B3, during a period betw...

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Detalles Bibliográficos
Autores: Góis, Alan Diógenes, Soares, Sandro Vieira
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2019
País:Brasil
Institución:Academia Brasileira de Ciências Contábeis (Abracicon)
Repositorio:Revista de Educação e Pesquisa em Contabilidade
Idioma:inglés
portugués
OAI Identifier:oai:ojs.www.repec.org.br:article/2229
Acceso en línea:https://www.repec.org.br/repec/article/view/2229
Access Level:acceso abierto
Palabra clave:Earnings management
Discretionary accruals
Corporate reputation
Signaling theory
Gerenciamento de resultados
Accruals discricionários
Reputação corporativa
Teoria da sinalização
Descripción
Sumario:Objective: This study aims to investigate the relationship between corporate reputation and earnings management in public companies listed in Brasil, Bolsa, Balcão (B3). Method: The sample is composed of 231 firms (1,355 observations) of all non-financial companies listed in B3, during a period between 2010 and 2017. Earnings management is measured by Jones (1991) modified by Dechow et al. (1995), Larcker and Richardson (2004) and Kothari, Leone and Wasley (2005). Corporate reputation (REP) is a binary variable based on the Transparency Trophy. Results: Corporate reputation through accounting transparency has a negative relationship with accruals discretionary, so corporate reputation increases the accounting quality, in which the H1 is not rejected. Contributions: Therefore, a good reputation is a signal to shareholders, creditors and other stakeholders regarding the quality of accounting information, which consequently gives firms a competitive advantage, thus, demonstrating that reputable firms are a good investment.