Identification the Efficient and Opportunistic Earnings Management Approaches in the Earnings Quality Levels

Earnings management is both good and bad. Of course, a little of earnings management can be improved information content of accounting. Opportunistic behavior of management with earnings manipulation decrease information credibility and wreck earnings quality. This research is trying to identify efficient or opportunistic type of earnings management in portfolio of high and low levels of earnings quality. For this purpose, data of 841 firm- year during 2001- 2011 to estimate earnings quality and earnings management measurement models and 490 firm-years to test the hypothesis were analyzed. Results show that earnings management in firms has a low quality of earnings opportunity. Thus, highly earnings management reduces the quality of earnings and artificial data.