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Dear Readers,

It is with great pleasure that we present this special edition of Brazilian Business Review (BBR) on Earnings Management in Brazil. Initially I would like to thank the efforts of all our reviewers and especially the editor in chief of BBR for the past two years, Professor Bruno Funchal. He came up with the idea for this special issue and with his encouragement we were able to dedicate this issue to such an important topic in the accounting and finance literature.

I cannot fail to mention that I was pleasantly surprised by the quantity and quality of submissions we received. This issue allows new or experienced researchers interested in EM to have a good sense of the past, present and future of research on the subject in Brazil.

The first article is a literature survey written by Antonio Lopo Martinez, recognized as one of Brazil’s leading experts on EM. The paper entitled "Earnings Management in Brazil: A survey of the literature" presents a comprehensive review of the recent academic literature on earnings management in Brazil, identifies key research themes that have been developed and presents results of potential interest to users, preparers and regulators of financial statements. I strongly recommend this paper to everyone interested in studying EM in the Brazilian setting.

Next, Sabrina P. Gioielli Ozawa, Antonio de Carvalho and Joelson Gledson Oliveira Sampaio investigate EM in initial public offerings and the role of venture capital managers (PE/VC) to mitigate such practice. The article is entitled "Venture capital and earnings management in IPOs."

"The role of economic variables and attributes of the portfolio in the estimation of discretionary provisions for losses on loans in Brazilian banks" is the third paper of this edition. José Dantas Alves , Otavio Medeiros Ribeiro and Paulo Roberto Barbosa Lustosa assess whether the combination of macroeconomic variables and attributes of the loan book improves the specification of models designed to identify the discretion of management in establishing provisions for bad loans by banks.

The fourth article, called "Earnings management in credit unions in Brazil", by Saul Cardoso Maia, Valeria Range Fully Bressan, Wagner Moura and Marcelo José Braga Lamounier, investigates an important and relatively unexplored subject in the EM literature.

The paper by Marta Cristina Pelúcio Grecco called "The effect of Brazilian convergence to IFRS on earnings management by listed Brazilian nonfinancial companies" assesses whether the adoption of international accounting standards (IFRS) resulted in a reduction in earnings management using accruals by listed nonfinancial companies in Brazil.

Finally, the paper by researchers at Louisiana State University, Samuel L. Tiras and Regina Cavalier-Rosa, named "Brazil ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''s Adoption of IFRS: Fertile Ground for Examining Earnings Management", presents a valuable contribution showing possibilities for research in EM in Brazil considering our migration process and the adoption of international accounting standards (IFRS).

I thank all the authors and hope that this issue is of great use to researchers and anyone interested in EM in Brazil. Good reading!
How to Cite
Galdi, F. (2018). Editorial. Brazilian Business Review, 10(4). Retrieved from
Jun 8, 2018
Jun 8, 2018
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