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REAL EARNINGS MANAGEMENT EFFECT ON CUSTOMER SERVICE AND SERVICE QUALITY
| Title: | REAL EARNINGS MANAGEMENT EFFECT ON CUSTOMER SERVICE AND SERVICE QUALITY. |
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| Name(s): |
Powers, Brett , author Kohlbeck, Mark , Thesis advisor Florida Atlantic University, Degree grantor School of Accounting College of Business |
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| Type of Resource: | text | |
| Genre: | Electronic Thesis Or Dissertation | |
| Date Created: | 2024 | |
| Date Issued: | 2024 | |
| Publisher: | Florida Atlantic University | |
| Place of Publication: | Boca Raton, Fla. | |
| Physical Form: | application/pdf | |
| Extent: | 111 p. | |
| Language(s): | English | |
| Abstract/Description: | I investigate the link between real earnings management and customer satisfaction. Following the passing of the Sarbanes-Oxley Act, which requires public companies to ensure the accuracy of their financial reporting, the use of non-accrual based methods to achieve financial earnings targets has become commonplace. Nonaccrual-based methods consist of decisions that curtail firm activities, which increase net income; however, these methods come at the cost of future operations. These opportunistic behaviors in the service, retail, and hospitality industries impact customers and a firm's long-term value. I hypothesize that the outcome will be lower customer satisfaction and service quality. I use firms’ publicly available financial information to detect real earning management (REM) of selling, general, and administrative (SG&A) expenses to understand how firms operate. Physical changes to a firm’s operating environment through these financial actions are immediately observable, generating negative electronic word of mouth. I use text analysis software to determine if the comment is positive or negative and the strength of the customers' sentiment, allowing me to observe the harmful effects of reducing SG&A expenses through the lens of the customer. In addition, I use American Customer Satisfaction Index (ACSI) scores to provide an overall assessment. I regress my customer satisfaction and service quality measures on the REM measure to test the hypotheses on the impact of REM. Further, I analyze and establish the link between REM's impact on the firm's sales growth rates. | |
| Identifier: | FA00014504 (IID) | |
| Degree granted: | Dissertation (PhD)--Florida Atlantic University, 2024. | |
| Collection: | FAU Electronic Theses and Dissertations Collection | |
| Note(s): | Includes bibliography. | |
| Subject(s): |
Consumer satisfaction Earnings management Customer services |
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| Persistent Link to This Record: | http://purl.flvc.org/fau/fd/FA00014504 | |
| Use and Reproduction: | Copyright © is held by the author with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder. | |
| Use and Reproduction: | http://rightsstatements.org/vocab/InC/1.0/ | |
| Host Institution: | FAU |
