@article{jfe20251312,
author={{Akber, S.M. and Barua, Dhiman and Mahmud, Shabuz and Sarker, Pranob Kumar and Khan, Md. Roman},
title={Factors Influencing Earnings Management: A Study of Bangladeshi Publicly Traded Firms},
journal={Journal of Finance and Economics},
volume={13},
number={1},
pages={14--27},
year={2025},
url={https://pubs.sciepub.com/jfe/13/1/2},
issn={2328-7276},
abstract={This study aims to identify the determinants of earnings management with a comprehensive sample of publicly traded companies in Bangladesh. The empirical study employed absolute discretionary accruals for earnings management, per literature. Opportunistic behaviour, monitoring procedures, and financial difficulty may affect earnings management. This study examined 240 publicly traded Bangladeshi companies from 2018 to 2022. The results show that free cash flow and profitability influence earnings management in Bangladeshi publicly listed enterprises. The study showed that earnings management is common when Bangladeshi enterprises are struggling. The findings of the study state that when Bangladeshi companies face financial difficulties, they frequently control their earnings. Contrary to what has been documented in the literature, the empirical results also imply that dividend payment, a monitoring mechanism, positively enhances earnings management. Specifically, the findings show that managers of publicly traded companies in Bangladesh are more prone to manipulate numbers when their company is doing well and has free cash flow and larger profits. This study explains earnings management variables well. It will provide authorities with information to tighten laws and regulations, boosting public trust in financial reporting.},
doi={10.12691/jfe-13-1-2}
publisher={Science and Education Publishing}
}