Financial Information Manipulation in Georgia


Are Georgian Private Sector Entities Engaged in Financial Information Manipulation?


Project Objectives:


  • The objective of this research project is to detect the levels of earnings management within the Georgian private sector


Project Activities and Outcomes:


This study contributes to the existing literature on international differences in earnings management. It also contributes to the literature on the relations of earnings management and its country-level determinants. The findings will be of importance for the regulators and investors of Georgia. Standard setters in the standard setting process often think from the perspective of advanced economies (the USA, the UK or the EU). They observe if standards bring positive outcomes within these settings, whereas the underdeveloped world merely copies from the experience of those advanced countries. The findings of this work will contribute to the field by witnessing the evidence of an underdeveloped economy in Georgia. As for the financial information users—and particularly tax regulators—they will gain insights at what level firms’ accounting fundamentals could be trusted within the Georgian private sector.


Project starting and finishing dates: 20.12.2017 – 19.12.2020

Coordinator University: Caucasus University (CU) – Georgia

Principal Investigator: Prof. Dr. Erekle Pirveli