Abstract
MANAGEMENT'S OPPORTUNISTIC PRACTICE AIMED AT ENHANCING INDIVIDUAL EARNINGS EVEN AT THE EXPENSE OF BUSINESS OVERALL VALUE IS KNOWN AS "DISCRETIONARY MANAGEMENT". THIS DISHONEST PRACTICE IS CLEARLY DISADVANTAGEOUS FOR SHAREHOLDERS. FOR DECADES, MANY RESEARCHERS HAVE TRIED TO IDENTIFY AND MEASURE THIS ACTIVITY AND THE SCHEMES USED FOR ACCRUAL MANIPULATION. IT IS OUR OBJECTIVE TO DESCRIBE EXISTING STUDIES ON MANAGERIAL DISCRETION". FIRST, WE EXPOSE AND ANALYZE THE CONDITIONS THAT LEAD TO THE MANIPULATION OF ACCRUALS BY MANAGEMENT. THEN, WE EXAMINE THE AVAILABLE METHODS TO DETECT AND MEASURE "DISCRETIONARY MANAGEMENT" AS WELL AS "EARNINGS REPORTS MANIPULATION" WHICH IS DONE THROUGH THE SCRUTINY OF REPORTED FINANCES. FINALLY, IT IS NOT COMPLETELY CLEAR HOW CAPABLE THESE MODELS ARE TO APPROPRIATELY DETECT THIS DISCRETIONARY MANAGEMENT.© 2018, Facultad de Contaduría y Administración, Universidad Nacional Autónoma de México. All rights reserved. Publication of the article implies full assignment of property rights (copyright) in Journal of Contaduría y Administración. The publication mreserves the right to total or partial reproduction of the work in other print, electronic or any other alternative means, but always recognizing its responsibility.
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