Naslov (eng)

Earnings Management and Internal Control System in State-Owned Companies: Evidence from Serbia

Autor

Đorđević, Milica
Spasić, Dejan
Đukić, Tadija

Opis (eng)

Abstract: The aim of the research is to examine the relationship between earnings management (EM) and internal control system (ICS) in state-owned companies in the Republic of Serbia. On a sample of 64 state-owned companies founded by local selfgovernment (11.92% of the total population in the Republic of Serbia), for the period 2018-2021, we examined the achieved level of implementation of EM practices in those entities, the relationship between EM and ICS, as well as the efficiency and effectiveness of ICS in deterring management from manipulations through earnings management. The basis for our analysis is the financial reports audited by the State Audit Institution (SAI), which means that 256 observations were made for the analyzed four-year period. Using the Chi-square tests of independence, we found that there is no positive correlation between earnings management on the one hand and financial management and control, as well as internal audit on the other hand, in state-owned companies in Serbia. Nevertheless, we point out the necessity of improving these two elements of the comprehensive ICS at the level of state-owned companies, in order to reduce the risk of manipulative financial reporting.

Jezik

engleski

Datum

2025

Licenca

Ovo delo je licencirano pod uslovima licence
Creative Commons CC BY-NC-ND 4.0 - Creative Commons Autorstvo - Nekomercijalno - Bez prerada 4.0 International License.

http://creativecommons.org/licenses/by-nc-nd/4.0/legalcode

Predmet

Keywords: discretionary accruals, financial management and control, internal audit, central harmonization unit, earnings management

Deo kolekcije (1)

o:28218

Ekonomski fakultet