This study explores the informational and opportunistic characteristics
of earnings management in ASEAN countries. Earnings management has an
impact on the profitability of the companies. A positive relation
between earnings management and future profitability reveals that
earnings management is informational. However, negative a relation
between earnings management and future profitability indicates that
earnings management is opportunistic. This study uses data from the
OSIRIS database. Four hundred and eighty five (485) companies from the
Philippines, Indonesia, Malaysia, Singapore, and Thailand are used as a
sample. This study focuses on 2 types of earnings management: (1)
accrual earnings management and (2) real earning management. Modified
Jones model is used for the accrual earnings management. Real earnings
management follows Roychowdury (2006). The results show that the
characteristics of earnings management are not consistent. Real earnings
management is informational in Thailand, but opportunistic in
Indonesia. Accruals earnings management is informational in the
Philippines, but opportunistic in Malaysia. Country factors such as
culture may explain the inconsistency of the results in ASEAN.