Are Polish Public Companies Cooking The Books? The Evidence From Annual Earnings Thresholds

Welc, Jacek

doi:10.19030/iber.v10i3.4104

Cited by 3 publications

(2 citation statements)

References 17 publications

(12 reference statements)

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“…Vellam () explains how the accounting profession in Poland has struggled to make the transition from the old legalistic and rule‐based procedures to the new investor‐oriented International Financial Reporting Standards (IFRS). Welc (, P83) studied stocks listed on the Warsaw Stock Exchange over the period 2000–2009 and found evidence of aggressive accounting practices, in particular “there is an unusually low number of observations with the net margin between −1.5 and 0 per cent and unusually high number of observations with the net margin between 0 and 2 per cent, which suggests that companies with unmanaged earnings just below zero boost those earnings to the levels just above zero”. Capkun et al.…”

Section: Literature Reviewmentioning

confidence: 99%

A Respecified Fama French Three‐Factor Model for the New European Union Member States

Foye

Mramor

Pahor

2013

Financ Manag Account

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This study uses factor models to explain stock market returns in the Eastern European (EE) countries that joined the European Union (EU) in 2004. In line with other studies, we find that the market value of equity component in the Fama French (1993) three‐factor model performs poorly when applied to our emerging markets dataset. We propose a significant amendment to the standard three‐factor model by replacing the market value of equity factor with a term that proxies for accounting manipulation. We show that our three‐factor model is able to explain returns in the EE EU nations significantly better than the Fama French (1993) three‐factor model, hereby offering an alternative model for use in the numerous markets in which previous studies have found little correlation between market value of equity and equity returns.

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Section: Literature Reviewmentioning

confidence: 99%

A Respecified Fama French Three‐Factor Model for the New European Union Member States

Foye

Mramor

Pahor

2013

Financ Manag Account

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“…Gierusz (2010) focused the research on the mapping of the different valuation methods in accounting having a significant impact on the enterprise results. Brzeszczy nski et al 2012and Welc (2011) investigated earnings manipulation among Polish companies providing evidence that manipulation with earnings is provided by Polish stock market companies. Strojek-Filus and Piosik (2013) analysed the relations between the phenomenon of earnings management and financial reporting policy.…”

Section: Introductionmentioning

confidence: 99%

Earnings management in V4 countries: the evidence of earnings smoothing and inflating

Klieštik

Belás

Valášková

et al. 2020

Economic Research-Ekonomska Istraživanja

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Earnings management is one of the most challenging, debated and controversial topics in finance and financial management. Organisational, legislative, and social norms regarding the ethics of earnings management may vary significantly, with the views of top management and economic environment playing significant roles in shaping the organisational social norm. Thus, the aim of this research is to assess if earnings management is the common practice of enterprises within V4 countries. A novel approach of the selection process to assess the ability of selected earnings management detection models was applied. To highlight discrepancies and similarities among the countries, the non-parametric alternative of analysis of variance was applied. The research confirmed that enterprises do manipulate earnings, typical is upward manipulation. Furthermore, the research unveiled the extent of manipulation with earnings in unique country samples and thus emphasised the importance of both corporate and national ethical principles and managerial decisions, which affect corporate financial reporting quality. However, it is increasingly challenging to identify various aspects and incentives which forced enterprises operating at the global level to smooth and inflate earnings to improve earnings presented in the financial statements and to misinterpret financial results.

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A Respecified Fama French Three Factor Model for the Eastern European Transition Nations

2016

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Are Polish Public Companies Cooking The Books? The Evidence From Annual Earnings Thresholds

Abstract: ABSTRACT

Cited by 3 publications

References 17 publications

A Respecified Fama French Three‐Factor Model for the New European Union Member States

A Respecified Fama French Three‐Factor Model for the New European Union Member States

Earnings management in V4 countries: the evidence of earnings smoothing and inflating

A Respecified Fama French Three Factor Model for the Eastern European Transition Nations

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