Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317563 
Year of Publication: 
2022
Citation: 
[Journal:] Journal of Business Economics and Management (JBEM) [ISSN:] 2029-4433 [Volume:] 23 [Issue:] 2 [Year:] 2022 [Pages:] 399-425
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
Financial managers intentionally use the legal manipulation of earnings to the business development. Earnings management is a widespread business finance phenomenon. The approaches and the ways of this practice are marked by many parallels. The main target of the article is to show the clusters with the close approach of the enterprises to the earnings manipulation and demonstrate hidden relations of the earnings management between sectors in the Visegrad Group. The study estimates the earnings management by the Modified Jones model. 52,545 discretionary accruals are computed for Slovak, Czech, Hungarian, and Polish enterprises for 5-year horizon in 19 sectors classified by the NACE. The clusters of close practices of the earnings management are identified based on principal component analysis and cluster analysis in every country of Visegrad Four. Moreover, the results detect the dependences between sectors in the region and the specificity of the sectors.
Subjects: 
business finance
cluster analysis
discretionary accrual
earnings management
PCA
Visegrad Four
JEL: 
M48
G30
F60
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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