Earnings management, earnings quality, and culture: cross-country studies

This study examines the association of accrual and real earnings management with earnings quality. The research sample comprised companies listed on six stock exchanges. Data analysis was conducted using a regression test and a t-test. The results indicate that both accrual and real earnings management are significantly associated with earnings quality. When the model includes cultural values, accrual, and real earnings management are associated with earnings quality in countries with low individualism and high uncertainty avoidance. Compared with real earnings management, accrual earnings management has a stronger association with earnings quality.