Earnings Management in Polish Companies

The paper presents results of the study, which aims to investigate the existence of „earnings management” phenomenon among the companies listed on the Polish stock market. The distributions of earnings per share (EPS) for those stocks around the thresholds: value of “zero” and the last year’s earning were analyzed in the period of 1997-2008. Moreover, the changes of earnings for the stocks, which are suspected to manipulate their earnings, were also investigated. The results, which indicate asymmetric distribution of earnings around the  thresholds along with the relative deterioration of earnings in the year following the year when the company is suspected to conduct earnings management practices, seem to provide evidence that this phenomenon exists among the Polish stock market companies.