Are earnings management practices normalised within accounting education? A study of students’ perceptions in Colombia

Abstract

From an ethical perspective, the exploration of earnings management remains insufficiently examined within the Latin American accounting landscape. To address this gap, this study explores the perceptions of accounting students at Colombian universities regarding earnings management practices that potentially deceive stakeholders. A questionnaire containing scenarios depicting earnings management was distributed to 261 accounting students across various cities. Through multivariate techniques and a logit model, the study finds that students from higher socioeconomic backgrounds and those with work experience are more inclined to perceive such practices as acceptable. Furthermore, students attending public universities perceive greater acceptance of earnings management among their peers and professors compared to those attending private universities. These findings suggest that accounting education appears to reinforce an ‘economic ethic’ that prioritises the interests of the capitalist model over ethical considerations. The study highlights the need to strengthen ethical education within accounting curricula, fostering moral reasoning development beyond merely adhering to professional ethical codes.