Abstract
Research background:Earnings management is global phenomenon of legal manipulation. The number of the examinations related to earnings management in the V4 region has been increased. These international studies identified the manipulation between countries and for different periods of years, but the assessment of individual sectors has been still missing. The article focused on sector manufacturing and its earnings management to gain global view of this issue for this region.Purpose of the article:The basic purpose and the selected aim of provided study was to detect the status of the activities of earnings management between the enterprises in the V4 region in set sector of the national economies.Methods:The realized financial study used 1,612 Slovak, Czech, Hungarian, and Polish enterprises from sector “C” manufacturing. Discretionary accruals were computed by the Modified Jones for the year 2019. One-way Anova was run for this investigation to test delivered hypotheses of the paper. Additionally, Scheffe’s procedure was computed to identify significant differences in manipulation of the earnings between individual countries.Findings & Value added:The article detected that there was difference between earnings management in the V4 region based on selected sample of enterprises from the sector manufacturing. Post hoc comparisons showed that significant discrepancy in earnings manipulation was between Slovak and Hungarian enterprises in 2019 on one hand. On the other hand, similar approach was between other emerging countries.
Highlights
The rapid development of increased globalization, Industry 4.0, smart production, open Internet infrastructure, and COVID-19 pandemic are bringing a significant shift from conventional management to the innovations (Majduchova & Kmety Bartekova, 2020; Valaskova et al, 2020; Bailey et al, 2021; Horvath et al, 2021; Mitchell et al, 2021)
The discretionary accruals were calculated for these samples by the Modified Jones model for the year 2019
The aim of article was to detect the status of the activities of earnings management between the enterprises in the V4 region in set sector of the national economies
Summary
The rapid development of increased globalization, Industry 4.0, smart production, open Internet infrastructure, and COVID-19 pandemic are bringing a significant shift from conventional management to the innovations (Majduchova & Kmety Bartekova, 2020; Valaskova et al, 2020; Bailey et al, 2021; Horvath et al, 2021; Mitchell et al, 2021). The managers from the V4 region use new ways to attract the investors. Earnings management is possible method to persuade the investors that the enterprise is suitable investment for their portfolio. The studies of Kliestik et al (2020a); Kliestik et al (2020b), Gregova et al (2021) and Siekelova et al (2021) confirm the existence of earnings management in the V4 region, but these investigations were focused on detecting discrepancies between countries in general, for all sectors. The main aim of the article is to detect the status of the activities of earnings management between the enterprises in the V4 region in sector “C” manufacturing of the national economies
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
