The Perception of Earnings Management According to an Econometric-Accounting Analysis: The Case of Tunisia
Accounting information provides support for decisions made by the company’s management and its partners. Potential investors, financial backers as well as authorities (financial and judicial) make their decisions based on this information, which itself is supposed to be drawn up in accordance with generally accepted accounting standards and principles. However, the existence of accounting choices and accounting policies that are diversified and standardized by the accounting system create the freedom for managers to manipulate the quality of the information. In other words, a situation of information asymmetry may tempt the managers of failing companies to adopt choices in order to influence the perception of risk by its partners.
