Constraint of real earnings management with mediating role of cash holdings: Evidence from US and China

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Opublikowane: lis 27, 2025
DOI: https://doi.org/10.33119/JMFS.2025.57.2
Słowa kluczowe:
Accrual earning management, Real earning management, CEO compensation, Audit Quality, Auditor Client Distance, Employee Tenure, Corporate Governance index, IFRS, Geographical location, corporate tax avoidance, Managerial Ownership, and China Stock market,

Main Article Content

Israfil Bangash
International Islamic University Islamabad
Hameeda Akhtar
International Islamic University Islamabad

Abstrakt

Research spanning the US and China examines real earnings management (REM) between 2006 and 2020. In the US, analysis focuses on auditor-client proximity, governance, IFRS adoption, and tax strategies. Auditor-client distance positively influences REM, hinting at managerial manipulation tendencies. Strong governance, IFRS compliance, and reduced tax strategies associate with decreased REM. Cash holdings act as mediators, emphasizing governance and audit quality's roles. Concurrently, in China’s emerging economy, the study dissects REM factors among Shanghai Stock Market firms. Similar to the US findings, employee tenure lacks significance, while cash holdings mediate, signaling positive performance and aligning with signaling theory. These studies bridge REM understanding, highlighting governance, frameworks, and signaling mechanisms' impact on transparent financial reporting across both advanced and emerging economies from distinct perspectives.

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Bangash, I., & Akhtar, H. (2025). Constraint of real earnings management with mediating role of cash holdings: Evidence from US and China. Journal of Management and Financial Sciences, (57), 33–52. https://doi.org/10.33119/JMFS.2025.57.2
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Nr 57 (2025): Journal of Management and Financial Sciences
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Utwór dostępny jest na licencji Creative Commons Uznanie autorstwa 4.0 Międzynarodowe.

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