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Jan van Rooijen

Flexibility in financial accounting. Income strategies and earnings management in the Netherlands

Accounting standards in the Netherlands are internationally known for their conceptual and flexible nature. There is a need to gain more understanding of financial accounting flexibility in general, and about managerial influence on accounting income more specifically. This study provides an overview of managers' use of financial accounting flexibility in the Netherlands and examines the possible accounting choices. In the empirical analysis the relationship between on the one hand accounting flexibility, income strategies and earnings management and, on the other hand the firm's financial situation and contracting variables are hypothesized and tested.