This study examines how enterprise resource planning (ERP) system implementations
affect the extent to which earnings amounts and release dates are managed. We
investigate whether, after adoption, the absolute value of firms’ discretionary accruals
increase and if ERP implementations lead to reductions in reporting lags for firms motivated
to release earnings quickly. ERP systems are defined as ‘‘information systems packages
that integrate information and information-based processes within and across functional
areas in an organization’’ (Kumar and Hillegersberg 2000, 22). The implementation and
utilization of ERP systems represent a radical change from the legacy systems of the past