MOTIVATION FACTORS FOR EARNING MANAGEMENT PRACTICE IN PUBLIC LISTED COMPANIES IN KENYA. By Onesmus Waiguru Kaboyo , ( Mcom , BBM, (CPAK) ) and George Macharia Wamwea ( Ph.D ongoing, MBA, BA(Econ.) ).
OnesmusWaiguruKaboyo, (Mcom, BBM, (CPAK))
George MachariaWamwea (Ph.D ongoing, MBA, BA(Econ.))
A Research Paper Presented at the 5th African International Business and Management (AIBUMA) Conference
= α + β1 Incentives
+ β2 Wealth increase
+ β3 Poor financial conditions
+ β4 Shareholders expectations
+ β5 Company Growth
+ β6 Accounts receivable/inventory
+ β7 Auditors changes
EM = Earnings Management.
I = Incentives.
W = Wealth Increase.
FC = Financial Condition.
SE = Shareholders Expectation.
ε = Error term
9 Kenyan public companies Avoidance of pressure from workers asking for higher wages
Public companies also practice earnings management to deal with their own unique situations.
Some of the ways the companies perpetrated the practice include