Our paper investigates, whether there exist intrinsic strategic characteristics, which enables some firms to tolerate economic difficulties stronger than their companions. Tolerance as such also indicates if SMEs as investments are providing return accordingly to their risk level. In our view,...

This study investigates whether the level of current earnings management can be used to predict future profitability of Finnish firms. Earnings management is assumed to predict future profitability, because firms use discretional accruals to manage this year's earnings upwards/downwards, if they...