EARNINGS MANAGEMENT AND FINANCIAL REPORTING QUALITY FOR LISTED COMPANIES

This paper brings in a thorough analysis of earnings management phenomenon and the ways it influences the quality of financial reporting. We examine the evolution and current premises of international financial reporting, whether this context provides incentives for using earnings management practices and if such managerial behavior is considered either positive or negative. We also point out by reviewing the specialized literature various perspectives on earnings management, characteristics, techniques and not least means of controlling opportunistic practices. In order to assess the impact of earnings management on the quality of accounting information, the paper emphasizes factors of influence and ways of measuring financial reporting quality. This research contributes to earnings management literature and points the way for further documentation.