In a study of how managers attempt to manage earnings, Ask an Expert

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In a study of how managers attempt to manage earnings, researchers analyzed a sample of 515 earnings- management attempts from a survey of experienced auditors. The frequency of effects is summarized in the table shown. Research question: At α = .01, is the effect on earnings independent of the approach used?

Current-Period Income Effect of Four Earnings Management Approaches

Approach Used

Increase Decrease No Clear Effect Total

Expenses and Other Losses 133 113 23 269

Revenue and Other Gains 86 20 8 114

Business Combinations 12 22 33 67

Other Approaches 41 4 20 65

Col Total 272 159 84 515

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Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M9391790

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