THE ETHICAL ASSESSMENTS OF PROFESSIONAL ACCOUNTING PRACTITIONERS TO EARNINGS MANAGEMENT PRACTICES IN TURKEY

Abstract

This study investigates independent professional accounting practitioners’ ethical assessment of earnings management practices in Turkey. A survey application was administered to practitioners in Aydin, İzmir, and Malatya to reveal their ethical evaluation in terms of operational and accounting manipulation. The results reveal very important contributions to literature. First of all, earnings management practices are evaluated as unethically by practitioners. Secondly, practitioners believe that accounting manipulations are ethically less acceptable than operational manipulations. Thirdly, earnings management applications which aim to reduce earnings are ethically less acceptable than earnings management applications which aim to increase earnings. Moreover, experienced practitioners evaluate earnings management practices ethically less acceptable, and education has no effect on practitioners’ ethical evaluations. Last but not least, practitioners who believe SMEs don’t apply earnings management practices in Turkey, evaluate earnings management practices less acceptable than practitioners who believe SMEs apply earnings management practices in Turkey.