Impact of Covid-19 on Earnings Management in Financial Reporting - Concept Paper

Mohamad Shahril Isahak; Anis Syahirah  Johari; Dina Adriana  Mohd Rahmatullah; Nur Amirah  Zainal; Nur Atiqah  Tajuddin; Nor Bazlinda  Kamaruddin

The outbreak of the COVID-19 pandemic in 2020 brought severe impacts on economies around the world. The market situation worsened and became uncertain due to the shock of the sudden virus outbreak. This has created issues for almost all industries globally as they must cater to the sudden changes in economies to stay competitive. Companies have taken the initiative by undertaking earnings management strategies in their accounting functions to present a strong performance in their financial reports. Due to this, the reliability and quality of financial reporting have been questioned. This paper explains the impacts of COVID-19 on earnings management in financial reporting. Three impacts are discussed: the enormous financial pressure on enterprises, the uncertainty due to the pandemic impacts on firm financial policies, and the increased information asymmetry between corporate outsiders and insiders. With these insights, suggestions are proposed on the control companies can implement to ensure the reliability and quality of the financial report.

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In-Text Citation: (Isahak et al., 2023)
To Cite this Article: Isahak, M. S., Johari, A. S., Rahmatullah, D. A. M., Zainal, N. A., Tajuddin, N. A., & Kamaruddin, N. B. (2023). Impact of Covid-19 on Earnings Management in Financial Reporting - Concept Paper. International Journal of Academic Research in Business and Social Sciences, 13(3), 1622 – 1632.

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Impact of Covid-19 on Earnings Management in Financial Reporting - Concept Paper

Mohamad Shahril Isahak, Anis Syahirah Johari, Dina Adriana Mohd Rahmatullah, Nur Amirah Zainal, Nur Atiqah Tajuddin, Nor Bazlinda Kamaruddin

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