Prior to analyzing the normalized f

Prior to analyzing the normalized factor scores mentioned in the paragraph above, we examined the means of the original 13 earnings management variables, grouped by the factors on which they loaded highly. Table III lists the mean responses to these original thirteen dependent earnings management variables and the mean of the variable means for each factor. (Table III omitted) Bruns and Merchant's (1990) finding that manipulating accounting methods is much less acceptable ethically to respondents than manipulating earnings by means of operating decisions is strongly supported by our data. Furthermore, within the operating decision manipulation area, our respondents felt that manipulation of decisions which changed the timing of expenses (OPEREXP) was somewhat more questionable ethically than manipulation which changed revenue timing (OPERREV). In the accounting manipulation area, there was little difference between respondents' ratings of the ethical acceptability of manipulation by means of adjusting inventory valuations (INVMANIP) and other forms of accounting manipulation (ACCMANIP).