Dividend-based earnings management: empirical evidence from Finland

Article Abstract:

The financial institution environment of Finland presents a viable means of adopting a dividend-based earnings management. In its debt-dominated capital market and its keiretsu-type of concentrated ownership, the smooth dividend stream expected by large institutional equity holders forces companies to report earnings high enough to pay dividends. Modeling has shown that the actual and predicted (dividend-based) earnings value do not stray away far from each other, favoring dividend-based earnings management.

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Earnings management and the economy sector hypothesis: empirical evidence on a converse relationship in the Finnish case

Article Abstract:

A study was conducted to characterize the relationship of the corporate economy sector and earnings management (EM) behavior. Finnish core sector firms from the forest and metal industries were considered. A converse relationship was observed between the economy sector of the firms and their EM behavior. The converse relationship was manly attributed to flexible accounting rules and high environmental uncertainty.

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The value relevance of IAS reconciliation components: Empirical evidence from Finland

Article Abstract:

The value relevance of Local Accounting Standards earnings and reconciliation components to the International Accounting Standards is considered.

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