USING THE EARNINGS MANAGEMENT TO REDUCTION OF POLITICAL COSTS: AN ANALYSIS FROM DVA

Authors

  • Lara Fabiana Dallabona Doutoranda em Ciências Contábeis e Administração pela Universidade Regional de Blumenau (FURB); Professora efetiva da Universidade do Estado de Santa Catarina
  • José Augusto Sousa Martins Mestre em Ciências Contábeis pela FURB
  • Roberto Carlos Klann Doutor em Ciências Contábeis e Administração pela FURB; Professor do Programa de Pós-Graduação em Ciências Contábeis da FURB

DOI:

https://doi.org/10.19094/contextus.v12i2.32179

Keywords:

Earnings management. Political costs. Statement of value added. Positive Theory. Regression.

Abstract

The study aims to identify the relationship among the distribution of added value to the government and the size of firms with earnings management practices. We conducted descriptive, documental and quantitative research, with application of multiple linear regression on a sample of 135 companies. The results show that the largest portion of the amount distributed was for the government through taxes and contributions, thus suggesting that the analyzed companies incur political costs due to high taxes in their operations. It was found that earnings management is negatively related to political costs and positively related to the size of companies, although not with statistical significance. We conclude, therefore, that the practice of earnings management cannot be explained by the distribution of value to government and company size.

Author Biographies

Lara Fabiana Dallabona, Doutoranda em Ciências Contábeis e Administração pela Universidade Regional de Blumenau (FURB); Professora efetiva da Universidade do Estado de Santa Catarina




Roberto Carlos Klann, Doutor em Ciências Contábeis e Administração pela FURB; Professor do Programa de Pós-Graduação em Ciências Contábeis da FURB




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Published

2014-10-06

How to Cite

Dallabona, L. F., Martins, J. A. S., & Klann, R. C. (2014). USING THE EARNINGS MANAGEMENT TO REDUCTION OF POLITICAL COSTS: AN ANALYSIS FROM DVA. Contextus - Contemporary Journal of Economics and Management, 12(2), 91–115. https://doi.org/10.19094/contextus.v12i2.32179

Issue

Vol. 12 No. 2: mai/ago 2014

Section

Articles

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