The Impact of Accounting Knowledge and Unethical Decision on Earnings Management

Abstract

Previous study have attempted the chairmen on board and senior manager implemented the earnings management based on their professional knowledge and educational background of accounting. Motivated by this findings, this study aimed to examine the effects of accounting knowledge on unethical decision in earnings management. Research conducted using experimental method with accounting and management students as participant. The results give conclusive evidence to state that accounting students exhibit the higher degree to manage the earnings than management students. Accounting students were exercised earnings management using different accounting choice. This findings highlight accounting knowledge and accounting choice are important factors of unethical issues of earnings management.