Measuring impacts of tax aggressinevess, earnings fluctuation and executive compensation on earnings management

Abstract

This research aims to examine the impact of tax aggressiveness, earnings fluctuation and executive compensation on earnings management within companies listed on the Brazilian stock exchange. To this end, an analysis with panel data regression was conducted with a total of 702 observations using data from 117 companies. We found a negative relation between earnings fluctuation and earnings management, indicating that companies with lower earnings fluctuation tend to have higher levels of earnings management, while abnormal BTD and executive compensation was not found in a significant relation. These results are relevant because they present evidence that managers use discretionary accruals to meet personal goals, reducing and/or increasing results.