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The Effect of Other Comprehensive Income Reporting on Accruals-based Earnings Management Activities
Abstract
This study examines the impact of other comprehensive income reporting in mitigating earnings management by using discretionary accruals for a sample of 83 industrial WSE-listed companies over the period of 2009–2016. We apply a panel least square model using year fixed-effects regression. We find that other comprehensive income reporting diminishes the extent of managerial earnings activities. Our findings suggest that a comprehensive income statement may have significant and positive implications for preventing aggressive accounting and helps users of financial statements identify earnings management better.
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DOI: http://dx.doi.org/10.17951/h.2018.52.3.127-135
Date of publication: 2018-11-07 08:13:31
Date of submission: 2018-05-09 22:50:40
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Copyright (c) 2018 Artur Sajnóg, Tomasz Sosnowski
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