earticle

영어

This study investigates Korean firms' earnings management behavior during the 1997 Asian Financial Crisis (AFC), the 2008 Global Financial Crisis (GFC), and the COVID-19 pandemic in 2020. It aims to compare earnings management practices three years before and during each crisis, measuring accrual-based adjustments and real activities-based management. Findings indicate increased financial reporting volatility during the AFC but no significant changes in earnings management. Conversely, during the GFC, there was a notable decrease in earnings management, consistent with Filip and Raffournier’s study. However, the COVID-19 period saw a significant rise in earnings management, diverging from previous crises. This research offers insights into Korean firms' financial adaptations during economic turmoil, aiding policymakers and investors.