Nguyen, Tam and Soobaroyen, Teerooven (2019) Earnings Management by Non-Profit Organisations: Evidence from UK Charities. Australian Accounting Review, 29 (1). pp. 124-142. DOI https://doi.org/10.1111/auar.12242
Nguyen, Tam and Soobaroyen, Teerooven (2019) Earnings Management by Non-Profit Organisations: Evidence from UK Charities. Australian Accounting Review, 29 (1). pp. 124-142. DOI https://doi.org/10.1111/auar.12242
Nguyen, Tam and Soobaroyen, Teerooven (2019) Earnings Management by Non-Profit Organisations: Evidence from UK Charities. Australian Accounting Review, 29 (1). pp. 124-142. DOI https://doi.org/10.1111/auar.12242
Abstract
Informed by stakeholder theory and resource dependence theory, this paper investigates whether United Kingdom (UK) charities are engaged in earnings management practices. Based on a sample of 1414 charities over a five-year period (2008–2012) this study firstly finds that UK charities use discretionary accruals to drive their financial results toward a zero surplus/deficit; this result also reveals that the distribution of reported earnings around zero is prevalent amongst UK charities. In addition, in contrast to prior findings, the empirical results point to a significant association between leverage and earnings management behaviour by charities. Lastly, this study also finds that the practice of earnings management is influenced by non-profit organizational size.
Item Type: | Article |
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Uncontrolled Keywords: | Earnings management; non-profit organisations; charities; stakeholder theory; resource dependence theory |
Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 14 Sep 2018 15:57 |
Last Modified: | 30 Oct 2024 16:16 |
URI: | http://repository.essex.ac.uk/id/eprint/21644 |
Available files
Filename: AAR EM_in_NPOs- Final Pre-Print 2018.pdf