Earnings Management via Operating Decisions in Brazilian Companies, 2008-2013

Panel data from 2008 to 2013 used in an empirical study to verify if Brazilian companies listed on the BM&FBOVESPA used earnings management via operating decisions to avoid disclosing losses. The paper by Elízio Marcos dos Reis focuses on three manipulation methods: sales manipulation, reducing SG&A expenses, and increasing production to lower costs of goods sold. Results indicate companies used SG&A reductions for this purpose, but not sales or production manipulation.

Use Cases

• Analyzing the relationship between reported losses and SG&A expense manipulation based on the study's findings.
• Modeling the propensity for earnings management via operational decisions in emerging markets like Brazil.
• Testing hypotheses from Prospect Theory in the context of corporate financial reporting behavior.

Strengths

• Data covers a specific six-year time range from 2008 to 2013.
• Focuses on three concrete operational manipulation methods: sales, SG&A, and production.

Limitations

• Row count and column-level documentation are unknown, limiting suitability assessment.
• The underlying dataset is not directly accessible; only the study's analysis and results are described.
• Data may reflect geographic bias inherent to its source, focusing solely on Brazilian companies.

Provenance

Source

Elízio Marcos dos Reis via paperswithcode.

Collection Method

Panel data analyzed using estimated regression models, as described in the paper's abstract.

Time Range

2008 to 2013

Geography

Brazil (companies listed on BM&FBOVESPA)