Financial reporting quality during and after the pandemic

Abstract

This thesis examines the impact of the COVID-19 pandemic on financial reporting quality, focusing on strengthening earnings management practices across sectors. The study examines accrual-based earnings management (AEM) and real activity manipulation (RAM) during and after the pandemic, which found a significant increase in AEM as firms responded to economic uncertainty although evidence of about RAM is less conclusive, findings industry specific Highlighting important differences, with customer cyclicals and industrial companies shown to be more sensitive to these practices These results highlight the importance of monitoring regulation if projects are targeted in times of economic instability.