Title: The impact of pandemic COVID-19 on earnings management in the European context

Authors: Assawer Elaoud; Nada Benhlima; Anis Jarboui

Addresses: Faculty of Economics and Management, University of Sfax, Tunisia ' Faculty of Economics and Management, University of Sfax, Tunisia ' Faculty of Economics and Management, University of Sfax, Tunisia

Abstract: The coronavirus pandemic (COVID-19) has changed behaviour and habits around the world. This paper investigates the impact of COVID-19 on earnings management in the European context. This study carried out on eight sectors and nine countries over two periods separated before and after the pandemic spread. The data were analysed through descriptive statistics. The results indicate that earnings management is on the decline during the period of the COVID-19 pandemic. Technology and digitisation facilitate the remote working by allowing sharing of the same information and reducing agency conflicts, thus helping to reduce the earnings management. The results of this research are relevant to investors and managers seeking advice on the management of their business during and after the pandemic. Besides, this paper helps companies put policies and strategies after the COVID crisis.

Keywords: coronavirus; earnings management; working remotely; information asymmetry; agency conflicts; digitisation; technology.

DOI: 10.1504/IJGFI.2022.123894

International Journal of Governance and Financial Intermediation, 2022 Vol.1 No.3, pp.193 - 202

Received: 07 Dec 2021
Accepted: 12 Jan 2022
Published online: 04 Jul 2022 *

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