Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10773/36552 |
Resumo: | This study focuses on the discretionary management of inventories based on real activity and the repercussions on the financial statements. We show the evidence of the discretionary management of real activity on inventories in 30,797 Portuguese Small and Medium-sized Enterprises (SME) from the commercial sector and its influence on financial information, using the adaptation of the quantitative methodology used by Roychowdhury (2006). Managers have the power to choose real activities to achieve their objectives. These discretion cause changes in the value of financial reporting of companies, which can be stimulating for managers who want to present financial statements that meet the requirements of stakeholders and their own interests. The results obtained allowed for the verification that the discretion included in inventory management is related to commercial management, and confirmed that managers seek to act in a way that maximizes their welfare by using discretion. The discretion causes deliberate changes in the economic and financial conditions of companies and, consequently, in the financial statements that are the element of support for decision making, for this reason it is deliberately caused asymmetry of information between the owner and other stakeholders in the information as is assumed in the agency theory and positive accounting theory. |
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Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sectorInventoryDiscretionaryReal activityManagementSmall and medium enterprisesThis study focuses on the discretionary management of inventories based on real activity and the repercussions on the financial statements. We show the evidence of the discretionary management of real activity on inventories in 30,797 Portuguese Small and Medium-sized Enterprises (SME) from the commercial sector and its influence on financial information, using the adaptation of the quantitative methodology used by Roychowdhury (2006). Managers have the power to choose real activities to achieve their objectives. These discretion cause changes in the value of financial reporting of companies, which can be stimulating for managers who want to present financial statements that meet the requirements of stakeholders and their own interests. The results obtained allowed for the verification that the discretion included in inventory management is related to commercial management, and confirmed that managers seek to act in a way that maximizes their welfare by using discretion. The discretion causes deliberate changes in the economic and financial conditions of companies and, consequently, in the financial statements that are the element of support for decision making, for this reason it is deliberately caused asymmetry of information between the owner and other stakeholders in the information as is assumed in the agency theory and positive accounting theory.Universidade de Aveiro2023-03-13T10:49:31Z2022-12-30T00:00:00Z2022-12-30info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10773/36552eng2795-503610.34624/ijbi.v1i4.30801Nogueira, Maria Filipa MirandaFerreira, AugustaFerreira, Carlosinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-02-22T12:10:28Zoai:ria.ua.pt:10773/36552Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:07:19.189265Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector |
title |
Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector |
spellingShingle |
Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector Nogueira, Maria Filipa Miranda Inventory Discretionary Real activity Management Small and medium enterprises |
title_short |
Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector |
title_full |
Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector |
title_fullStr |
Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector |
title_full_unstemmed |
Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector |
title_sort |
Inventories discretionary management through real activities: the case of small and medium-sized Portuguese companies in commercial sector |
author |
Nogueira, Maria Filipa Miranda |
author_facet |
Nogueira, Maria Filipa Miranda Ferreira, Augusta Ferreira, Carlos |
author_role |
author |
author2 |
Ferreira, Augusta Ferreira, Carlos |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Nogueira, Maria Filipa Miranda Ferreira, Augusta Ferreira, Carlos |
dc.subject.por.fl_str_mv |
Inventory Discretionary Real activity Management Small and medium enterprises |
topic |
Inventory Discretionary Real activity Management Small and medium enterprises |
description |
This study focuses on the discretionary management of inventories based on real activity and the repercussions on the financial statements. We show the evidence of the discretionary management of real activity on inventories in 30,797 Portuguese Small and Medium-sized Enterprises (SME) from the commercial sector and its influence on financial information, using the adaptation of the quantitative methodology used by Roychowdhury (2006). Managers have the power to choose real activities to achieve their objectives. These discretion cause changes in the value of financial reporting of companies, which can be stimulating for managers who want to present financial statements that meet the requirements of stakeholders and their own interests. The results obtained allowed for the verification that the discretion included in inventory management is related to commercial management, and confirmed that managers seek to act in a way that maximizes their welfare by using discretion. The discretion causes deliberate changes in the economic and financial conditions of companies and, consequently, in the financial statements that are the element of support for decision making, for this reason it is deliberately caused asymmetry of information between the owner and other stakeholders in the information as is assumed in the agency theory and positive accounting theory. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-12-30T00:00:00Z 2022-12-30 2023-03-13T10:49:31Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10773/36552 |
url |
http://hdl.handle.net/10773/36552 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
2795-5036 10.34624/ijbi.v1i4.30801 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade de Aveiro |
publisher.none.fl_str_mv |
Universidade de Aveiro |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799137728645824513 |