Accrual-based earnings management and organizational life cycles: Two-dimensional analysis

Objective: The article aims to determine the relationship between stage of a business life cycle and scope directions accrual-based earnings management (AEM) in industrial companies listed on Warsaw Stock Exchange (WSE). Research Design & Methods: assessment statistical relationships patterns individual stages an organization’s (OLC) was carried out based Kruskal-Wallis test by ranks Mann-Whitney U test. extraction discretionary accruals performed Modified Jones model, while Dickinson model evaluated OLC stages. study investigated 297 2012-2020 period. Findings: Empirical studies have shown that strategies intentionally lowering net result prevailed research sample. AEM practices, estimated accruals, largest growth maturity phase. frequency big bath reporting related phases, with losses exceeding 20% total assets being most often reported among decline stage. On other hand, small incomes even across all tested subpopulations. Implications Recommendations: indicates need continue scientific issues measuring quality accounting data prediction tools various techniques for shaping financial result. Understanding underlying motives determinants drive enterprises performance is prerequisite preventing this type activity practice. Contribution Value Added: presents innovative approach assessing It referred examining specific (e.g. income) characterized generated cash flows.