Can financial crisis affect earning management practices?
Can financial crisis affect earning management practices? A financial crisis has long been seen as a way for governments to cut taxes and increase the debt of their citizens , which forces industries to lay off employees . However , this is not always the case , as those in power also resort to cutting back on government support such as healthcare, education and even unemployment benefits . The biggest problems with this kind of financial crisis is that while it does cause job losses and other adverse effects, sometimes they are so severe that governments resort to nationalization of sectors as a way to keep up . This can lead to large companies becoming bankrupt while many others continue to operate through different means . There has been a lot of discussion about whether or not these types of countries should have done away with nationalized industries due to the costs caused by them and how they could be better managed. In addition, there ...