Mamatzakis, Emmanuel and Boahen, E.O. (2024) The impact of interaction between religion and legal environment on expense misclassification and real activities: international evidence. Asian Review of Accounting , ISSN 1321-7348.
|
Text
Final- Manuscript With Abstract.pdf - Author's Accepted Manuscript Available under License Creative Commons Attribution. Download (849kB) | Preview |
Abstract
We examine the interaction between variations in religious social norms and legal environments on real activities manipulations and expense misclassification using a global sample of 63 countries. Our inquiry is motivated by a paucity of research on the interaction between legal environment and religion on earnings management practices in an international setting. We report that variations in religious social norms and legal environments interactions around the world subdue the positive association between religion, expense misclassification and real activities noted in prior studies. We find variability in the interaction between religion and legal environment on expense misclassification and real activities in developed, emerging and developing countries sub-samples. We conduct several robustness tests and our results provide more empirical evidence and indicate that strengthening the legal environment will complement religion, IFRS and other monitoring mechanisms put in place to mitigate unethical expense misclassification and real activities earnings manipulation.
Metadata
| Item Type: | Article |
|---|---|
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Research Centres and Institutes: | Accounting and Finance Research Centre |
| Depositing User: | Emmanuel Mamatzakis |
| Date Deposited: | 18 Dec 2024 13:42 |
| Last Modified: | 18 Dec 2024 15:16 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/54722 |
Statistics
Additional statistics are available via IRStats2.
Archive Staff Only (login required)
