EARNINGS MANAGEMENT AND ABNORMAL RETURN: DO THE BRAZILIAN MARKET REACT TO EARNINGS MANAGEMENT?

Authors

  • Dione Olesczuk Soutes UNIOESTE - Universidade Estadual do Oeste do Paraná

DOI:

https://doi.org/10.5380/rcc.v3i3.22783

Keywords:

Earnings Management, Abnormal Return, Event Study

Abstract

The present article aims to verify if the Brazilian market reacts differently to the companies that do earnings management with the objective of reducing the variability of their results. The hypothesis: “companies with lower variability receive different incentives from the other companies” was rejected, in other words, the average cumulative abnormal return of the group of companies classified as "Managers" was statistically equal to the average cumulative abnormal return of the group of companies classified as "Unmanagers". The statistical test Mann-Whitney was used to compare the average of the both groups. There were no significant differences in any of the tests, in other words, the average of the “Managers” and the “Unmanagers”, of the following economic sectors: Steel Industry and Metallurgy and Telecommunications, can be considered statistically identical, with the significance level at 5%.

Author Biography

Dione Olesczuk Soutes, UNIOESTE - Universidade Estadual do Oeste do Paraná

Doutora em Controladoria e Contabilidade pela FEA/USP Professora na Unioeste - Campus de Marechal Cândido Rondon

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Published

2011-10-21

How to Cite

Soutes, D. O. (2011). EARNINGS MANAGEMENT AND ABNORMAL RETURN: DO THE BRAZILIAN MARKET REACT TO EARNINGS MANAGEMENT?. Revista Contabilidade E Controladoria - RC&C, 3(3). https://doi.org/10.5380/rcc.v3i3.22783

Issue

Vol. 3 No. 3 (2011): Volume 3| Número 3| Set./Dez.| 2011

Section

Articles

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Copyright (c) 2011 Revista Contabilidade e Controladoria - RC&C

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