The Effect of Geographic Distance on Earnings Management Decisions
通过实验发现，决策者与报告地点之间的地理距离越远，越愿意使用不太被接受的盈余管理方法，因为距离减轻了对方法道德性和风险性的担忧。
ABSTRACT Prior research has found evidence that country factors and management styles influence earnings management decisions in various geographic locations. Extending this research, we utilize an experimental setting to isolate the effect of geographic distance on the willingness to manage earnings in a near/distant location. In an initial experiment, we find less acceptable earnings management methods generate greater concerns about the method (ethicality and riskiness) leading to less willingness to manage earnings. Yet, greater geographic distance between the decision-maker and reporting location attenuates these concerns, resulting in increased willingness to use a less acceptable method. In contrast, individuals are willing to use a more acceptable method to manage earnings regardless of geographic distance. These findings are consistent with construal level theory (CLT) and are corroborated in a second experiment where we find that greater geographic distance reduces managers' focus on the means of earnings management, thereby reducing concerns about the method. Data Availability: Available upon request from the authors.