Earnings Management and Investor Protection: An International Comparison
Earnings Management and Investor Protection: An International Comparison ArXiv ID: ssrn-281832 “View on arXiv” Authors: Unknown Abstract This paper examines the pervasiveness of earnings management across 31 countries between 1990 and 1999. It documents systematic differences in earnings manageme Keywords: earnings management, international accounting standards, corporate governance, financial reporting, equities Complexity vs Empirical Score Math Complexity: 2.5/10 Empirical Rigor: 8.0/10 Quadrant: Street Traders Why: The paper relies on descriptive country cluster analysis and multiple regression with large international datasets rather than advanced mathematical modeling, but it uses rigorous multi-country accounting data and robustness checks for implementation. flowchart TD A["Research Goal<br>Examine earnings management<br>across 31 countries (1990-1999)"] --> B["Data Collection<br>Financial statement data &<br>investor protection indices"] B --> C["Methodology: Discretionary Accruals<br>Modified Jones Model<br>Estimate abnormal accruals"] C --> D{"Computational Process"} D --> E["Cross-sectional analysis<br>by country and legal origin"] D --> F["Regression analysis<br>Earnings quality vs.<br>investor protection metrics"] E --> G["Key Findings/Outcomes"] F --> G G --> H["1. Stronger investor protection<br>reduces earnings management"] G --> I["2. Legal origin drives<br>reporting quality differences"] G --> J["3. Common law countries<br>show better earnings quality"]