ADC. Suma de Negocios · 2024

Earnings management in Latin America: Systematic review and research agenda

Despite the abundance of studies on earnings management in Latin America, research into the current state of this field remains limited. Therefore, this article aims to analyse the content and evolution of earnings management research within the Latin American context. This study employed a systematic literature review of earnings management in Latin America spanning the years 1994 to 2023. Two databases, Scopus and Web of Science, were utilised to identify and select 132 relevant articles. The study makes three significant contributions. Firstly, it conducts a descriptive analysis of earnings management research in the region. Secondly, it categorises the research field into seven themes: earnings management metrics, corporate governance, business strategy, alignment with International Financial Reporting Standards (IFRS), audit quality, ownership structure, and various aspects of earnings management. Thirdly, it outlines a comprehensive research agenda.