Earnings management and firm's market value

This book has the aim to provide an analysis on the possible reasons that may induce mangers to engage in earnings management in an insider market economy. Despite the recent increase in research by academic, practitioners and the focus from the policy maker, the earnings management phenomenon still remain relatively misunderstood, particularly with reference to the insider system economy. Based on the existing literature, this study analyzes the relationship between earnings management an firm's market value of the Italian listed companies. In contrast to the United States, Italy is a code-law and insider system country. The financial accounting system is characterized by a close overlap with tax accounting systems, which allows me to study the relationship with a different perspective than is possible with U.S. data. Thus, the reasons that may induce Italian managers to engage in earnings mangement may be different from the US ones. The earnings management phenomenon has been studied in both perspectives income-increasing and income-decreasing earnings management.

Autorentext

Elisa Raoli got her Ph.D. in Management at Luiss giudo Garli in May 2012. During her Ph.D. she spent several months at the George Washington University as a visiting Scholar. Presently, she has a post doc position at Luiss Giudo Carli and she teaches introduction to business economics at Lumsa University of Rome.