Service quality and earnings management in Brazilian electricity distributors

Purpose This article examines the relationship between service quality and earnings management in Brazilian electricity distributors. Design/methodology/approach Service quality was measured using the Global Continuity Performance Indicator, as released by the Brazilian Electricity Regulatory Agency (ANEEL). To measure earnings management, the models by Dechow et al. (1995), Kothari et al. (2005), and Pae (2005) were used. Findings The results show that lower service quality is related to greate