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Address the questions: Why earnings are so important that firms feel compelled to manipulate them? What is earnings management? What set of circumstances will induce earnings management? And how will the interaction among management, boards of directors, investors, employees, suppliers,...
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demonstrates that sanctions do not significantly influence accrual-based earnings management. However, it reveals a robust positive … induced by sanctions, firms may find employing real earnings management strategies more advantageous than accrual … political sanctions enhance the substitution relationship between real and accrual earnings management. …
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