Earnings management and restatement of financial results in firms traded on B3

• Autor(a) principal: De Luca, Márcia Martins Mendes
• Data de Publicação: 2020
• Outros Autores: Viana, Ana Olívia Batista, Sousa, Karen Davila Freitas de, Cavalcante, Danival Sousa, Cardoso, Vanessa Ingrid da Costa
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: RACE (Joaçaba. Online)
• Texto Completo: https://periodicos.unoesc.edu.br/race/article/view/23711
• topic: Earnings management; Restatement of financial results; Earnings quality; Gerenciamento de resultados; Republicação de demonstrações contábeis; Qualidade da informação

The information presented in financial statements directly impacts the stakeholders' decision-making. In this context, we intended to verify the relationship between earnings management and the restatements of financial results. In this study, we evaluated whether firms engaging in earnings management are more prone to restate their financial results, based on a sample of 154 firms traded on B3 (Brazilian Stock Exchange) and 201 restatements, covering the period 2011-2017. The collected data was submitted to content analysis, descriptive statistics, correlation analysis and logistic regression. Our results point to a positive association between restatement of financial results and earnings management by discretionary accruals; in other words, the study hypothesis could not be rejected. Interestingly, a considerable part of the restatements was voluntary, suggesting that many firms wish to provide information users with better earnings quality.