A Review Analysis of Earnings Management Report Disclosure


  • Dalila Abu Bakar Faculty of Accounting, Finance, and Business at Tunku Abdul Rahman Universiti of Management and Technology, Pahang branch
  • Mohamed Hisham Haji Yahya Accounting and Finance department, Sekolah Perniagaan dan Ekonomi, Universiti Putra Malaysia
  • Norhuda Abdul Rahim School of Business and Economics, Universiti Putra Malaysia, 43400 Selangor, Malaysia




Earnings Management, Annual Report, Tax, CSR


Occupational fraud costs the average firm 5% of its annual income. This equates to a $3.7 trillion yearly loss due to fraud worldwide. The bulk of reported losses (51.9%) were less than $200,000. Financial statement fraud is the most expensive type of occupational fraud, with an average loss of $1,000,000. The most popular methods of detecting fraud are tips (42.2%), management reviews (16.0%), and internal audits (14.1%). Surprisingly, external audits (done by CPA firms) account for just about 3.0% of fraud detection. The majority of cases of fraud identified through tips come from workers (49.0%), followed by consumers (21.6%). Financial reports have been used to anticipate stock return, and firms with top management counsel (TMC) are less likely to see their stock price fall. Therefore, this paper offers a review of the research on earnings management conducted in earlier studies. The problem arising from earnings management will be covered under dilemma in earnings management disclosure studies. Next, evidence of earning management activities is discussing on the previous studied of earnings management. This study also investigates the approaches employed by early researchers to address this problem. The finding discovered by the researcher will be covered under the discussion on earnings management disclosure. Researchers can use this review paper as a reference for researching earnings management in annual reports


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How to Cite

Abu Bakar, D. . ., Haji Yahya, M. H. . ., & Abdul Rahim, N. . (2023). A Review Analysis of Earnings Management Report Disclosure. Journal of Governance and Integrity, 6(1), 462–469. https://doi.org/10.15282/jgi.6.1.2023.9106



JGI Vol. 6 Issue 1, April 2023