The Impact of Earnings Management on Firm Value: A Conceptual Framework

Earnings management is considered a tool to help managers present business results flexibly, but it also has the potential to distort accounting information, thereby affecting investors’ decisions and business valuation in the market. However, many research results show that the relationship between earnings management and firm value is still inconsistent. This study is based on agency theory and signaling theory to propose a conceptual framework that highlights the impact of earnings management on firm value, integrating the moderating role of firm size. Keywords: earnings management, firm value, firm size, conceptual framework. DOI: 10.7176/RJFA/16-9-04 Publication date: November 30th 2025