{"product_id":"environmental-crisis-management-and-earnings-strategy-two-cases-von-jia-hu-peng-cheng","title":"Environmental crisis management and earnings strategy: two cases","description":"\u003cp\u003eThis paper examines the accounting choice in a response to a major environmental crisis by looking at BP (British Petroleum) and Zijin Mining (a mining firm listed on Shanghai Stock Exchange, ZM hereafter), both of which face an environmental crisis at a similar level in 2010. The results show that BP may overly recognize crisis-related expenses in the year of crisis, suggesting that BP is likely to use the income-decreasing earnings management (e.g., big bath accounting etc.) as a response to the crisis. Then, BP partly reverses the expenses and pushes up reported earnings in the subsequent year. On the contrary, ZM¿s operating performance (sales growth \u0026amp; profitability) and stock performance seem to be superior subsequent to the crisis. Importantly, we find that the firm uses income-increasing accruals management to boost reported earnings. Further data investigation indicates that several specific accruals have been inflated in the year of crisis: i.e., provisions for asset impairment, accounts receivables and inventories. In addition, a few real earnings management items have been examined, but the findings are mixed.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783659613067\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783659613067","offer_id":39449513590877,"sku":"9783659613067","price":39.9,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/6d84ea43-41f3-4d90-9869-e3064f0a40c1.jpg?v=1775967547","url":"https:\/\/shop.autorenwelt.de\/products\/environmental-crisis-management-and-earnings-strategy-two-cases-von-jia-hu-peng-cheng","provider":"Autorenwelt Shop","version":"1.0","type":"link"}