Earnings Quality and Accruals over Company´S Life Cycle

Research background: The increasing number of bankruptcies and the growing risk financial distress highlight need for quality statements, conservative accounting or increase tools to detect occurrence earnings management. However, life cycle a company affects performance key aspects management, which examined in international context only small extent. Purpose article: paper examines impact country-specific factor on value discretionary accruals tourism sector Visegrad countries, are among most vulnerable sectors coming economic crisis. Methods: This study uses method two-way analysis variance with interaction, while also testing assumptions model by normality tests, homogeneity test post hoc tests (Scheffé Tukey methods). Findings & Value added: Earnings changes during business; whereas first stages (introduction, growth) decline they use downward On contrary, mature shake-out companies have enough positive before taxes, is prerequisite tax profit optimization. level management varies significantly at different cycle, but countries. results imply that qualitative variable corporate interaction country an important explanatory variable, implementation can improve power models Central European developing