Relationship between Specific Accruals and Disclosed Accounting results of companies in financial failure

Kamel Fekiri

Relationship between Specific Accruals and Disclosed Accounting results of companies in financial failure

Kamel Fekiri * § Docteur en Sciences de Gestion

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Tunis University

Relationship between Specific Accruals and Disclosed Accounting results of companies in financial failure

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Abstract

The display of net counter-performance (explained by the existence and persistence of negative accruals) can help leaders to convince partners of the need to renegotiate contracts. The importance of the measurement of the earnings management lies, for the most part, in the suspicion of undervaluation of debts and losses. This suspicion is so persistent that this risk of undervaluation must be taken into account in the valuation of any business. Nevertheless, we have tried through this article to test the approach of the models of specific accruals in order to identify them and to measure their impacts on the modification of the published result. Indeed, three models were tested, that is, that of receivables, inventories and amortization and provisions, which allowed us to validate the hypothesis according to which the managers of financially failing companies tend to exploit the Discretionary Accruals in an upward management goal to circumvent the costs of financial distress and change the perception of risk by its partners, especially donors. Based on this approach by the specific accruals, we have developed the model (4) which incorporates the specific discretionary accruals as explanatory variables of the formation of the published net result.

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16 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Kamel Fekiri. 2018. "Relationship between Specific Accruals and Disclosed Accounting results of companies in financial failure". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 18 (GJMBR Volume 18 Issue D1).

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GJMBR Volume 18 Issue D1

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-D Classification JEL Code: M41

Submission ReceivedDecember 12, 2017
Peer Review Double Blind
Handling Editor
Accepted January 4, 2018
Published January 15, 2018

Version of record

v1.2

Issue date

January 30, 2018

Language

English

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Article Matrices

Total Score: 149

Country: Tunisia

Subject: Global Journal of Management and Business Research

Authors: Kamel Fekiri, Ezzeddine Abaoub (PhD/Dr. count: 0)

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