The paper aims to examine earnings management practices in local governments, focusing on two Mediterranean countries, namely Greece and Italy that have comparable administration systems. According to public choice theory, the conflicting interests between politicians who pursue re-election and...

This study examines the relationship between financial distress and earnings management practices in a family-owned economic context, such as Italy, focusing on non-publicly listed small and medium sized entities (SMEs). Analysing five years prior to bankruptcy, we document that private SMEs...