Approach to behavior identification traditional and modern earnings management

Abstract

Earnings Management (EM) is a strategy intentionally used by board of director to align a company's earnings targets with predetermined goals. While some view this as a useful tool in financial reporting, others view this as a fraudulent act that distorts the company's true financial status. Therefore, detecting EM is very important for financial report users. With the method of analyzing and synthesizing related research, the study focuses on methods to determine EM through different approaches, helping the author go deeper and understand more specifically the nature of the research, from traditional methods to today's modern data mining models. Each method has different advantages and disadvantages when applied in practical research. Simultaneously combining research methods can provide a comprehensive understanding of their practices and implications in current EM research.