Manipulating reported earnings is a temptation faced by accountants and ﬁnancial professionals around the world. Manipulating, or “managing,” one’s accounting earnings takes a variety of forms and includes not only the avoidance of prescribed accounting rules but also the practice of selectively choosing accounting estimates or timing operating decisions to move reported earnings toward a desired goal. Prior research reveals wide disagreement regarding the perceived ethical acceptability of this practice. This study investigates whether national origin inﬂuences perceptions of earnings management. Participants from the United States and Mexico evaluated thirteen vignettes describing various earnings management practices (Merchant and Rockness 1994). Analyses of the responses indicate considerable variation between students from these two countries, indicating culture does signiﬁcantly impact how individuals perceive opportunities to manage reported ﬁnancial information.
Copyright © 2007 Universidad Nacional Autonoma de Mexico. This article first appeared in Contaduria y Administracion 223 (September 2007): 53-68.
Please note that downloads of the article are for private/personal use only.
Geiger, Marshall A., Carmen Quirvan, and Alejandro Hazera. "An International Comparison of Student Perceptions of Earnings Management: Evidence of Effects of National Origin between Mexico and the United States." Contaduria y Administracion 223 (September 2007): 53-68. Accessed April 4, 2014. http://www.redalyc.org/articulo.oa?id=39522304