Title: Conservatism culture, earnings management, and corporate governance: studies on Asia Pacific countries

Authors: Anna Purwaningsih

Addresses: Faculty of Business and Economics, Department of Accounting, Universitas Atma Jaya Yogyakarta, Jalan Babarsari No. 43, Yogyakarta, 55281, Indonesia

Abstract: This study aims to investigate the effect of conservatism culture on earnings management practices, both accrual and real earnings management. In addition, this study also investigates corporate governance to the relationship between conservatism culture and earnings management. The research samples were eleven Asia Pacific countries from 2010 to 2019. The data were taken from the Bloomberg and Thomson Reuters databases. Hypothesis testing was done with Multiple Linear Regression. The results provide empirical evidence that: 1) the conservatism culture has a positive effect on accrual (real) earnings management; and 2) corporate governance weakens the positive relationship between conservatism culture and accrual (real) earnings management practices. Therefore, these test results confirmed consistency-built hypotheses.

Keywords: conservatism; culture; AEM; accrual earnings management; REM; real earnings management; corporate governance; Asia; Pacific.

DOI: 10.1504/IJMEF.2025.148078

International Journal of Monetary Economics and Finance, 2025 Vol.18 No.2/3, pp.103 - 109

Received: 02 Mar 2023
Accepted: 05 Dec 2023
Published online: 25 Aug 2025 *

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