DEVELOPING AN IMPROVED MEASURE OF EARNINGS MANAGEMENT

Over the last 30 years, researchers have developed different approaches to measure earnings management. This study builds on prior research and combines total accrual approach distribution after management develop a more accurate of Empirical results show that this refined in is able precisely identify firms manipulated (manipulators) did not manipulate (non-manipulators). contributes literature meet or beat specific benchmark. The paper has practical implications. In particular, practitioners (financial analysts investors) can use new accurately detect firms' activities. enables better interpret financial statements news.