... empirical step, we examine whether accounting proximity affects earnings management (EM) using indicators developed by Leuz et al. (2003). Findings The results partially support Jorge's (2007) model. The findings indicate that financing structures, audit governance, and budgeting systems...

...Harry Müller; Marcus Sidki Purpose Despite the growing body of empirical literature on earnings management in municipal bodies and enterprises on the municipal level, the theoretical foundations often remain limited. This article contributes to filling this research gap by discussing the agency...

...Ioanna Malkogianni Purpose This study examines specific budget execution items (as proxies of vulnerability and sustainability) along with political factors to identify earnings management (EM) practices in Greek municipalities. Design/methodology/approach The study employs a sample of 1,831...

...Augusta Ferreira Purpose The aim of this paper is to investigate whether Mayors in Portugal engage in earnings management close to zero with the motivation of re-election. Design/methodology/approach The data used in this study were annual financial information from Portuguese municipalities...

...Ane Haugdal; Frode Kjærland; Levi Gårseth-Nesbakk; Are Oust Purpose This study explores whether hard regulatory control decreases the level of earnings management in local governments. The implementation of a new regulatory approach by Norwegian authorities provides the opportunity...

... in spending power through the appropriation of financial resources affects earnings management practices in municipally controlled entities. Practical implications This paper sheds light on government-based accounting policies by documenting evidence of somewhat inefficient responses by those responsible...

...Luís Serra Coelho This paper investigates the earnings management (EM) practices of Portuguese municipal firms (MFs), which are a special type of public-sector entity. MFs are identified using a dedicated list maintained by the Portuguese Government. Accounting data are collected from...

...Marco Bisogno; Pierre Donatella Purpose Research dealing with earnings management in the public-sector context is expanding. This paper aims to review the existing literature to understand how research is developing and points out gaps deserving further investigation. Design/methodology...

...Sandra Cohen; Ioanna Malkogianni Purpose This study analyses the engagement of Greek municipalities in earnings management activities through the manipulation of their accrual accounts. It aims at identifying whether discretionary accruals are associated with certain financial sustainability...

...Augusta Ferreira; João Carvalho; Fátima Pinho Purpose The main purpose of this paper is to evaluate if, motivated by political competition, municipalities engage in earnings management practices through discretionary accruals. Design/methodology/approach Quantitative methodology. Findings...