The Association of Real Earnings Management with: Enterprise Resource Planning Systems, Audit Effort, and Future Financial Performance

Authors

Angel Arturo Pacheco Paredes, Florida International UniversityFollow

Document Type

Dissertation

Degree

Doctor of Philosophy (PhD)

Major/Program

Accounting

First Advisor's Name

Clark Wheatley

First Advisor's Committee Title

Committee chair

Second Advisor's Name

Kannan Raghunandan

Second Advisor's Committee Title

Committee member

Third Advisor's Name

Dasaratha Rama

Third Advisor's Committee Title

Committee Member

Fourth Advisor's Name

Suchismita Mishra

Fourth Advisor's Committee Title

Committee member

Keywords

Earnings management, Real earnings management, ERP, Audit report lag, Restructuring

Date of Defense

6-14-2016

Abstract

Emerging research on real earnings management [REM] has expressed the concern that firms deviating from normal business practices may endure a negative impact on future cash flows and performance. This dissertation (in three essays) investigates the phenomenon of real earnings management in its association with: 1) enterprise resource planning systems [ERPs]; 2) audit report lags [ARLs]; and 3) future firm performance. In the first investigation I hypothesize that the increased monitoring associated with the implementation of an ERP will result in a decline in REM. In the second investigation I hypothesize that higher levels of REM will evoke greater auditor scrutiny and be associated with longer ARLs. In the third investigation I hypothesize that managerial actions that would ordinarily be classified as REM: reductions in discretionary expenditures or overproduction, are not REM but indicative of enhanced efficiencies when found in concert with prior period restructurings or expected future sales growth respectively. In each of the three investigations, my hypotheses are confirmed.

Identifier

FIDC000701

Recommended Citation

Pacheco Paredes, Angel Arturo, "The Association of Real Earnings Management with: Enterprise Resource Planning Systems, Audit Effort, and Future Financial Performance" (2016). FIU Electronic Theses and Dissertations. 2624.
https://digitalcommons.fiu.edu/etd/2624