Ethical issues related to earnings management: An instructional case

Michael T. Dugan, Peter S. Knox, Gary Taylor

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


This instructional case explores the comparative ethical implications of accrual versus real earnings management. Primary issues include management's concern about how to meet analysts' annual earnings forecasts and its effects on future performance. Secondary issues include use of the COVER ethical decision-making model to help students address the difference between the two types of earnings management. In addition to gaining experience in ethical decision-making, students are introduced to implications of various stakeholders' concerns about short run versus long run performance. The case has a difficulty level of four and five to include senior level business courses as well as first year graduate students. The case is designed to be taught in three class hours and is expected to require six hours of outside preparation by students.

Original languageEnglish (US)
Pages (from-to)84-89
Number of pages6
JournalJournal of the International Academy for Case Studies
Issue number4
StatePublished - Jan 1 2016

ASJC Scopus subject areas

  • Business and International Management
  • Education
  • Law


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