Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334404 
Year of Publication: 
2025
Citation: 
[Journal:] Journal of Economics, Finance and Administrative Science [ISSN:] 2218-0648 [Volume:] 30 [Issue:] 60 [Year:] 2025 [Pages:] 250-267
Publisher: 
Emerald Publishing Limited, Leeds
Abstract: 
Purpose - This article examinesthe relationship between service quality and earnings management in Brazilian electricity distributors. Design/methodology/approach - Service quality was measured using the Global Continuity Performance Indicator, as released by the Brazilian Electricity Regulatory Agency (ANEEL). To measure earnings management, the models by Dechow et al. (1995), Kothari et al. (2005), and Pae (2005) were used. Findings - The resultsshow that lowerservice quality isrelated to greater opportunism in management through earnings management. Furthermore, the study shows that managing earnings can distort the true economic and financial position of companies with low operational performance. Research limitations/implications - The research enhances comprehension regarding the correlation between service quality, measured by the Global Continuity Performance Indicator, and earnings management within a distinct industrial and regulatory framework. This could establish a foundation for prospective studies delving into analogous relationships across diverse sectors or regions. Practical implications - The findings offerinsightsforregulatory authoritiesto promote higherstandardsin the generation of informational quality, which can impact the quality of services. Social implications - Enhancing the quality of electrical service through more responsible management practices leads to increased consumer satisfaction, driven by improvements in the continuity of energy supply. Originality/value - A gap exists in the literature due to the lack of studies examining the relationship between the quality of electrical service, measured by the continuity index, and opportunistic management practices through earnings management.
Subjects: 
Global continuity performance
Earnings management
Brazilian electricity sector
Earnings quality
JEL: 
M41
M48
Q40
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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