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Developments in the global economy have changed the traditional balance between customer and supplier. New communications and computing technology, and the establishment of reasonably open global trading regimes, mean that customers have more choices, variegated customer needs can find expression, and supply alternatives are more transparent. Business models are therefore fundamentally linked with the technological innovation, yet the business model construct is essentially separable from technology. This new ecosystem for developing business model has amplified the need for more customer-centric to capture value from providing new products, technologies and services. The objective of this journal is to bring together research contributions on the design, specification, and implementation of architectures, protocols, and algorithms for current and future organizational strategy and business models.


  • Group Decision Support Systems
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  • Enterprise Knowledge Engineering and      Management
  • Business Modeling and Business Process      Management
  • Business-IT Alignment
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  • Foresight and Visioning in National
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  • Guidelines
    The Effects of Business Cycles on Earnings Management of Korean Companies
    Volume 1, No. 1, September 2020 | 8 pages| http//dx.doi.org/10.46410/jbtm.2020.1.1.04


    Jengei Hong, Assistant Professor of Economics, School of Management and Economics at Handong Global University
    Geun Bae Jang, Assistant Professor of Accounting, School of Management and Economics at Handong Global University


    Earnings management is an activity of adjusting corporate earnings to take advantage of the activities. The researches on the act of earnings management have been centered on the relationship between the decision of earnings management and the financial condition of an individual company. However, a company’s tendency to make earnings management might depend not only on the financial variables shown in the financial statement of the company but also on the macroeconomic environment. There have been not much researches on the relations between earnings management and macroeconomic environment. Hence, we investigate whether the firms are making more earnings management during the contraction period of macroeconomic business cycles or the boom period of the business cycle. Using a data set of Korean companies, we examined a fixed effect panel regression model. The results revealed that firms were making more earnings management during the boom period of the microbusiness cycle rather than the contraction period. This could stem due that firms would like to avoid disclosure of lower net income compared to the expectations of analysts or the average net income of companies in the same industry. This result can help external auditors in identifying key risks in performing external audits and, also, it could give an insight to investors.


    Business Cycle; Earnings Management; Economic Motivation; Financial Decisions; Real GDP Growth Rate


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    Hong, J. & Jang, G. B. (2020). The Effects of Business Cycles on Earnings Management of Korean Companies. Journal of Business and Technology Management (JBTM), HolyKnight, vol. 1, 25-32. doi.org/10.46410/jbtm.2020.1.1.04.

    Hong, Jengei, et al “The Effects of Business Cycles on Earnings Management of Korean Companies.” Journal of Business and Technology Management, HolyKnight, vol. 1, 2020, pp 25-32. JBTM, https://holyknight.co.uk/journals/jbtm/Vol1-1/4.html.

    [1] J. Hong, and G. B. Jang, “The Effects of Business Cycles on Earnings Management of Korean Companies.” Journal of Business and Technology Management (JBTM), HolyKnight, vol. 1, pp. 25-32. September 2020.