Earnings Management in Private Swedish Companies -A Study of the Contributing Factors

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Background and problem: Due to a large number of accounting scandals the academic term earnings management has become more known to the world in recent years, which has lead to an increased demand for further research on this subject. The research questions of this thesis are the following; To what extent do private limited companies in Sweden manage their earnings? How do the following factors affect the existence of earnings management in private limited Swedish companies; industry, debt to equity ratio and choice of audit firm?\nPurpose: To inform the reader on the existence of earnings management in private limited companies in Sweden and what can affect its existence by analyzing more than 45 000 observations through a population study. Also, this thesis serves to add to the previous fairly vague research in the private sector area and to create awareness for all stakeholders about these problems.\nLimitations: This population study will examine 5 341 private limited Swedish compa

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