the effect of erp system implementations on the management of earnings and earnings release dates（erp系统的影响实现收益和收益管理的发布日期）.pdfVIP

JOURNAL OF INFORMATION SYSTEMS Vol. 22, No. 2 Fall 2008 pp. 1–21 The Effect of ERP System Implementations on the Management of Earnings and Earnings Release Dates Joseph F. Brazel North Carolina State University Li Dang California Polytechnic State University ABSTRACT: ERP systems have become the system of choice for the majority of pub- licly traded companies and have radically changed the way accounting information is processed, prepared, audited, and disseminated. In this study, we examine whether ERP system implementations have affected the extent to which firms manage earnings amounts and release dates. We find, for a sample of ERP adopters, that implementa- tions led to increases in the absolute value of discretionary accruals (i.e., greater earn- ings management). We also find a positive relationship between the extent of ERP module adoption and the extent of earnings management. With respect to earnings release dates, firms with incentives to increase the timeliness of their release dates experienced a decrease in reporting lag after implementing ERP systems. These results should be of interest to financial statement preparers initially adopting or implementing new versions of ERP applications, auditors serving clients with ERP systems, and reg- ulators overseeing the financial markets and consolidation in the ERP industry. Keywords: ERP systems; discretionary accruals; implementation; reporting lag. Data Availability: Key data items used in this study were obtained from a proprietary source. All other sources of data are described in the study. I. INTRODUCTION h