Haga, JesperHuhtamäki, FredrikSundvik, Dennis2023-02-062023-02-062021-02-13Haga , J , Huhtamäki , F & Sundvik , D 2021 , ' Employee effort and earnings management ' , Global Finance Journal , vol. 53 , no. 1 , 100622 . https://doi.org/10.1016/j.gfj.2021.10062227264807http://hdl.handle.net/10227/543320In this study, we examine the relationship between employee effort within the firm and earnings management, using data on working hours and discretionary accruals. With higher employee effort, we find less earnings management among U.S. firms. This result is stronger when earnings are more predictable and persists after we control for endogeneity. We also find smaller earnings discontinuities with higher employee effort. Our domestic results remain the same with a global sample. Our results suggest that earnings management enables benchmark beating with greater precision than can high employee effort alone, but also that high-effort firms may be misclassified as earnings manipulators.611559engcc_byinfo:eu-repo/semantics/openAccess512 Business and ManagementEarnings discontinuitiesEarnings managementLoss avoidanceKOTA2021PREM2021_042 - Hybrid open access publication channel0 - Not self archivedhttp://hdl.handle.net/10227/5433200- Ingen av författarna har en utländsk affiliation1- Publicerad utomlands0- Ingen affiliation med ett företagAoS: Financial management, accounting, and governanceYesSDG 3 - Good Health and Well-beingArticleopenAccess85101415264dc982599-8fbe-41f8-abd4-08992d0fa58b