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Moacir Sancovschi ;Revista Universo Contábil 2005, 1 (1)

Autor: Felipe Faissol Janot de Matos

Fuente: http://www.redalyc.org/


Introducción



Revista Universo Contábil ISSN: 1809-3337 universocontabil@furb.br Universidade Regional de Blumenau Brasil Janot de Matos, Felipe Faissol; Sancovschi, Moacir EARNINGS MANAGEMENT: THE CASE OF LUCENT TECHNOLOGIES Revista Universo Contábil, vol.
1, núm.
1, enero-abril, 2005, pp.
101-111 Universidade Regional de Blumenau Blumenau, Brasil Available in: http:--www.redalyc.org-articulo.oa?id=117015129008 How to cite Complete issue More information about this article Journals homepage in redalyc.org Scientific Information System Network of Scientific Journals from Latin America, the Caribbean, Spain and Portugal Non-profit academic project, developed under the open access initiative EARNINGS MANAGEMENT: THE CASE OF LUCENT TECHNOLOGIES 1 Felipe Faissol Janot de Matos Mestre em Ciências Contábeis pela UFRJ E-mail: mefsancov@uol.com.br Moacir Sancovschi Doutor em Administração pela UFRJ Prof.
Titular do Departamento de Contabilidade da UFRJ Prof.
do Mestrado em Ciências Contábeis da FACC-UFRJ E-mail: mefsancov@uol.com.br ABSTRACT The use of accounting discretion to window dress financial statements seems to be eroding public confidence in the financial reporting process.
Critics argue that some managers are intentionally abusing GAAP’s afforded discretion to manage earnings.
This can reduce the quality of the financial reporting process and ultimately bring adverse effects on resource allocation in the economy.
Not surprisingly, market participants, legislators, regulators, and academics are concerned with the need to control financial reporting abuses.
In this paper we briefly review the recent literature on earnings management and show the incentives as well as the mechanics used by Lucent’s managers to manipulate earnings.
We found strong incentives for Lucent’s managers to report smooth and increasing earnings to: a) increase the firm’s market capitalization; b) enhance management compensation and job security; and c) reduce the company’s cost of...





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