Resumen de Do Enterprise Resource Planning Systems (ERPs) Constrain real earnings management?

Angel Arturo Pacheco Paredes, Clark M. Wheatley

• The examination of the beneficial impact of enterprise resource planning systems (ERPs) on firm performance appears in extensive literature. Prior studies also examine how ERP implementations impact the timeliness of financial information. Few studies, however, address the question of whether the increase in managers' access to accounting data differentially influences managerial behavior. We investigate the association of ERP implementation with managers' flexibility to deviate from normal operating practices to present better financial results. Our findings suggest that after the implementation of an ERP, earnings management through real activities declines. These results particularly indicate that ERP implementations enhance the quality of financial reporting by constraining opportunistic managerial behavior. [ABSTRACT FROM AUTHOR]