The Quality of Accruals and Earnings

Download The Quality of Accruals and Earnings PDF Online Free

Author :
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)

DOWNLOAD NOW!


Book Synopsis The Quality of Accruals and Earnings by : Ilia D. Dichev

Download or read book The Quality of Accruals and Earnings written by Ilia D. Dichev and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper suggests a new measure of one aspect of the quality of accruals and earnings. The major benefit of accruals is to reduce timing and mismatching problems in the underlying cash flows. However, accruals accomplish this benefit at the cost of making assumptions and estimates about future cash flows, which implies that accruals include errors of estimation or noise. Since estimation noise reduces the beneficial role of accruals, this study suggests that the quality of accruals and earnings is decreasing in the magnitude of estimation noise in accruals. More specifically, we develop a simple model of working capital accruals where accruals correct the timing problems in cash flows at the cost of including errors in estimation. Based on the model, we derive an empirical measure of accrual quality as the residual from firm-specific regressions of changes in working capital on past, present, and future operating cash flow realizations. The study concludes with two empirical applications that illustrate the usefulness of our measure of accrual quality. First, we explore the relation of accrual quality to economic fundamentals. We find that accrual quality is negatively related to the magnitude of total accruals, length of the operating cycle, and the standard deviation of sales, cash flows, and earnings, while it is positively related to firm size. Second, we show a strong positive relation between accrual quality and earnings persistence.

The Quality of Accruals and Earnings: The role of Accrual Estimation Errors

Download The Quality of Accruals and Earnings: The role of Accrual Estimation Errors PDF Online Free

Author :
Publisher :
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4.L/5 ( download)

DOWNLOAD NOW!


Book Synopsis The Quality of Accruals and Earnings: The role of Accrual Estimation Errors by : Patricia M. Dechow and Ilia D. Dichev

Download or read book The Quality of Accruals and Earnings: The role of Accrual Estimation Errors written by Patricia M. Dechow and Ilia D. Dichev and published by . This book was released on 2001 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Earnings Quality

Download Earnings Quality PDF Online Free

Author :
Publisher : Now Publishers Inc
ISBN 13 : 1601981147
Total Pages : 97 pages
Book Rating : 4.6/5 (19 download)

DOWNLOAD NOW!


Book Synopsis Earnings Quality by : Jennifer Francis

Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.

Earnings quality and earnings management

Download Earnings quality and earnings management PDF Online Free

Author :
Publisher : Rozenberg Publishers
ISBN 13 : 9051709870
Total Pages : 217 pages
Book Rating : 4.0/5 (517 download)

DOWNLOAD NOW!


Book Synopsis Earnings quality and earnings management by : Sanjay Wikash Bissessur

Download or read book Earnings quality and earnings management written by Sanjay Wikash Bissessur and published by Rozenberg Publishers. This book was released on 2005 with total page 217 pages. Available in PDF, EPUB and Kindle. Book excerpt:

The Quality of Accruals and Earnings

Download The Quality of Accruals and Earnings PDF Online Free

Author :
Publisher :
ISBN 13 :
Total Pages : 148 pages
Book Rating : 4.:/5 (776 download)

DOWNLOAD NOW!


Book Synopsis The Quality of Accruals and Earnings by : Nicolas Abdo

Download or read book The Quality of Accruals and Earnings written by Nicolas Abdo and published by . This book was released on 2010 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Earnings Quality

Download Earnings Quality PDF Online Free

Author :
Publisher : Research Foundation of the Institute of Chartered Financial Analysts
ISBN 13 : 9780943205687
Total Pages : 152 pages
Book Rating : 4.2/5 (56 download)

DOWNLOAD NOW!


Book Synopsis Earnings Quality by : Patricia M. Dechow

Download or read book Earnings Quality written by Patricia M. Dechow and published by Research Foundation of the Institute of Chartered Financial Analysts. This book was released on 2004-01-01 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Earnings Management. The Influence of Real and Accrual-Based Earnings Management on Earnings Quality

Download Earnings Management. The Influence of Real and Accrual-Based Earnings Management on Earnings Quality PDF Online Free

Author :
Publisher : GRIN Verlag
ISBN 13 : 3964875953
Total Pages : 81 pages
Book Rating : 4.9/5 (648 download)

DOWNLOAD NOW!


Book Synopsis Earnings Management. The Influence of Real and Accrual-Based Earnings Management on Earnings Quality by :

Download or read book Earnings Management. The Influence of Real and Accrual-Based Earnings Management on Earnings Quality written by and published by GRIN Verlag. This book was released on 2024-01-31 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2019 in the subject Business economics - Accounting and Taxes, University of Duisburg-Essen, course: Master Thesis, language: English, abstract: This paper delves into various theories and approaches, aiming to define and differentiate earnings management from related concepts such as fraud, expectation management, and impression management. It explores the goals and incentives driving earnings management, including maximizing or minimizing earnings, beating targets, and smoothing. At the onset of the new millennium, corporate scandals rocked the business world, eroding trust in management, boards of directors, and the accounting profession. In response, regulations and policies aimed at enhancing corporate governance and financial reporting were swiftly implemented. The credibility, clarity, and consistency of financial reporting practices play a pivotal role in enabling investors to make informed decisions. Accurate and fair financial performance representations, as opposed to inflated and misleading figures, are essential for market players, including shareholders and creditors. Investors rely on audited financial reports to guide their investment decisions, underscoring the critical importance of accuracy and reliability in publicly available financial disclosures. Auditors, by reducing the risk of material misstatement, ensure the integrity of the information disclosed in a company's financial statements. Management, with the goal of achieving promised targets and ensuring the company's existence, may engage in earnings management as a strategic contribution to corporate policy. Financial reporting serves as a means to distinguish well-performing companies from their counterparts, facilitating efficient resource allocation and empowering stakeholders to make effective decisions. The disclosed earnings results significantly impact a firm's overall business activities and management decisions, particularly in satisfying analysts' expectations, which can influence equity value. While accounting standards play a role, the quality of financial statements is more influenced by company-specific and institutional factors shaping managers' incentives. These factors lead to financial reporting practices being viewed as the outcome of a cost-benefit assessment.

Earnings Quality

Download Earnings Quality PDF Online Free

Author :
Publisher : Springer Nature
ISBN 13 : 3030367983
Total Pages : 154 pages
Book Rating : 4.0/5 (33 download)

DOWNLOAD NOW!


Book Synopsis Earnings Quality by : Elisa Menicucci

Download or read book Earnings Quality written by Elisa Menicucci and published by Springer Nature. This book was released on 2019-12-21 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an overview of earnings quality (EQ) in the context of financial reporting and offers suggestions for defining and measuring it. Although EQ has received increasing attention from investors, creditors, regulators, and researchers in different areas, there are various definitions of it and different approaches for its measurement. The book describes the relationship between EQ and earnings management (EM) since they can be considered related challenges, especially in the context of international financial reporting standards (IAS/IFRSs). EM occurs when managers make discretionary accounting choices that are regarded as either an efficient communication of private information to improve the informativeness of a firm’s current and future performance, or a distorting disclosure to mislead the firm’s true performance. The intentional manipulation of earnings by managers, within the limits allowed by the accounting standards, may alter the usefulness of financial reporting and lead to lower quality of earnings. The use of fair value in financial reporting has created a current debate about the impact it might have on EQ. At times, the high subjectivity in estimating fair value can allow opportunities for the exercise of management judgments and intentional bias, which can reduce the quality of financial reporting. Management discretion can result in high EM and hence in a reduction of EQ. Particularly during difficult financial periods, managers engage in EM to mask the negative effects of the turmoil, and in such circumstances accruals and earnings smoothing are attempts to reduce abnormal variations of earnings in such circumstances. This book is a valuable resource for those interested in wider perspectives on EQ and it adds to the research studies on this topic in the context of financial reporting.

Line-Item Analysis of Earnings Quality

Download Line-Item Analysis of Earnings Quality PDF Online Free

Author :
Publisher : Now Publishers Inc
ISBN 13 : 1601982127
Total Pages : 159 pages
Book Rating : 4.6/5 (19 download)

DOWNLOAD NOW!


Book Synopsis Line-Item Analysis of Earnings Quality by : Melumad Nahum

Download or read book Line-Item Analysis of Earnings Quality written by Melumad Nahum and published by Now Publishers Inc. This book was released on 2009 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: Line-Item Analysis of Earnings Quality provides a comprehensive summary and analysis of the specific earnings quality issues pertaining to key line item components of the financial statements. After providing an overview of earnings quality and earnings management, Line-Item Analysis of Earnings Quality analyzes key line items from the financial statements. For each key line item, the authors: review accounting principles; discuss implications for earnings quality; evaluate the susceptibility of the item to manipulation; describe analyses and red flags which may inform on the item's quality. Line-Item Analysis of Earnings Quality will prove useful in conducting fundamental and contextual analyses through its analysis and evaluations.

Introduction to Earnings Management

Download Introduction to Earnings Management PDF Online Free

Author :
Publisher : Springer
ISBN 13 : 3319626868
Total Pages : 120 pages
Book Rating : 4.3/5 (196 download)

DOWNLOAD NOW!


Book Synopsis Introduction to Earnings Management by : Malek El Diri

Download or read book Introduction to Earnings Management written by Malek El Diri and published by Springer. This book was released on 2017-08-20 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides researchers and scholars with a comprehensive and up-to-date analysis of earnings management theory and literature. While it raises new questions for future research, the book can be also helpful to other parties who rely on financial reporting in making decisions like regulators, policy makers, shareholders, investors, and gatekeepers e.g., auditors and analysts. The book summarizes the existing literature and provides insight into new areas of research such as the differences between earnings management, fraud, earnings quality, impression management, and expectation management; the trade-off between earnings management activities; the special measures of earnings management; and the classification of earnings management motives based on a comprehensive theoretical framework.

Earnings Management, Conservatism, and Earnings Quality

Download Earnings Management, Conservatism, and Earnings Quality PDF Online Free

Author :
Publisher :
ISBN 13 :
Total Pages : 142 pages
Book Rating : 4.:/5 (318 download)

DOWNLOAD NOW!


Book Synopsis Earnings Management, Conservatism, and Earnings Quality by : Ralf Ewert

Download or read book Earnings Management, Conservatism, and Earnings Quality written by Ralf Ewert and published by . This book was released on 2012 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: Earnings Management, Conservatism, and Earnings Quality reviews and illustrates earnings management, conservatism, and their effects on earnings quality in an economic modeling framework. Both earnings management and conservative accounting introduce biases to financial reports. The fundamental issue addressed is what economic effects these biases have on earnings quality or financial reporting quality. Earnings Management, Conservatism, and Earnings Quality reviews analytical models of earnings management and conservatism and shows that both can have beneficial or detrimental economic effects, so a differentiated view is appropriate. Earnings management can provide additional information via the financial reporting communication channel, but it can also be used to misrepresent the firm's position. What the authors find is that similar to earnings management, conservatism can reduce the information content of financial reports if it suppresses relevant information, but it can be a desirable feature that improves economic efficiency. The approach to study earnings management, conservatism, and earnings quality is based on the information economics literature. A variety of analytical models are reviewed that capture the effects and subtle interactions of managers' incentives and rational expectations of users. The benefit of analytical models is to make precise these, often highly complex, strategic effects. They offer a rigorous explanation for the phenomena and show that sometimes conventional wisdom does not apply. The monograph is organized around a few basic model settings, which are presented in simple versions first and then in extensions to elicit the main insights most clearly. Chapter 2 presents the basic rational expectations equilibrium model with earnings management and rational inferences by the capital market. Chapter 3 is devoted to earnings quality and earnings quality metrics used in many studies. Chapter 4 studies conservatism in accounting. Finally, the authors examine the interaction between conservatism and earnings management. Each chapter ends with a section containing a summary of the main findings and conclusions.

Business Analysis and Valuation

Download Business Analysis and Valuation PDF Online Free

Author :
Publisher :
ISBN 13 : 9780170261951
Total Pages : 720 pages
Book Rating : 4.2/5 (619 download)

DOWNLOAD NOW!


Book Synopsis Business Analysis and Valuation by : Sue Joy Wright

Download or read book Business Analysis and Valuation written by Sue Joy Wright and published by . This book was released on 2014 with total page 720 pages. Available in PDF, EPUB and Kindle. Book excerpt: Business Analysis and Valuation has been developed specifically for students undertaking accounting Valuation subjects. With a significant number of case studies exploring various issues in this field, including a running chapter example, it offers a practical and in-depth approach. This second edition of the Palepu text has been revitalised with all new Australian content in parts 1-3, making this edition predominantly local, while still retaining a selection of the much admired and rigorous Harvard case studies in part 4. Retaining the same author team, this new edition presents the field of valuation accounting in the Australian context in a clear, logical and thorough manner.

Information in Accruals About the Quality of Earnings

Download Information in Accruals About the Quality of Earnings PDF Online Free

Author :
Publisher :
ISBN 13 :
Total Pages : 52 pages
Book Rating : 4.:/5 (129 download)

DOWNLOAD NOW!


Book Synopsis Information in Accruals About the Quality of Earnings by : Scott A. Richardson

Download or read book Information in Accruals About the Quality of Earnings written by Scott A. Richardson and published by . This book was released on 2001 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: We extend the analysis in Sloan (1996) to identify the source of information in accruals about earnings quality. Our results indicate that information in accruals about earnings quality is not limited to the current accruals analyzed by Sloan, but extends to non-current accruals. We also show that while information in accruals originates almost exclusively from asset accruals, liability accruals play a useful role in helping to isolate information in asset accruals about earnings quality. Finally, we show that information in accruals about earnings quality originates from both growth in the scale of operations and deterioration in the efficiency of asset usage. Overall, our results indicate that total accruals, defined as the difference between earnings and free cash flows, provide an intuitive, robust and parsimonious measure of earnings quality. Contrary to existing studies, our results also indicate that the information in accruals about earnings quality is not attributable to a single factor, such as 'discretionary' accruals or firm growth.

Trends in Accrual Quality and Real Activity-based Earnings Management in the Pre and Post Sarbanes-Oxley Eras

Download Trends in Accrual Quality and Real Activity-based Earnings Management in the Pre and Post Sarbanes-Oxley Eras PDF Online Free

Author :
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (514 download)

DOWNLOAD NOW!


Book Synopsis Trends in Accrual Quality and Real Activity-based Earnings Management in the Pre and Post Sarbanes-Oxley Eras by : Nicholas Christopher Lynch

Download or read book Trends in Accrual Quality and Real Activity-based Earnings Management in the Pre and Post Sarbanes-Oxley Eras written by Nicholas Christopher Lynch and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: An increase in the prevalence of earnings restatements and cases of financial statement fraud in the early 21st century led to a significant loss of market capitalization and investor confidence in the attestation process. In an effort to restore such confidence, Congress passed the Sarbanes-Oxley Act (SOX) in July of 2002. The Act significantly increased the penalties for engaging in accrual activities aimed at either misleading users of the financial statements concerning the underlying economic condition of the firm or influencing contractual outcomes. As a result of the increased penalties for engaging in accrual activities, one would expect a relative shift from accrual activities to real activities to facilitate earnings management in the post-SOX period. As with most academic social disciplines, the test employed in my dissertation is a joint test of the sensitivity of the tools available to detect management activities, the research design, and the presence and strength of the effect for which I am searching. This dissertation is the first to test for changes in both accrual quality and real activity-based earnings management in the post-SOX period. The findings of the study empirically support a change in earnings management techniques in the post-SOX period compared to the pre-SOX period. Specifically, the quality of accruals incorporated into the accounting earnings figure have significantly increased in the post-SOX period. However, instances of earnings management using real activities have also significantly increased in the post-Sox period. These findings inform academics about the power of the tools used in academic accounting research and the overall quality of the argument. They inform users of financial statements about where to direct their attention in reading and evaluating the financials. Finally, they inform regulators, practitioners and policy makers of the effectiveness of the law at improving the quality of accruals, and bring to their attention a potential substitution in the techniques used to manage earnings.

Earnings Management, Conservatism, and Earnings Quality

Download Earnings Management, Conservatism, and Earnings Quality PDF Online Free

Author :
Publisher :
ISBN 13 :
Total Pages : 142 pages
Book Rating : 4.:/5 (318 download)

DOWNLOAD NOW!


Book Synopsis Earnings Management, Conservatism, and Earnings Quality by : Ralf Ewert

Download or read book Earnings Management, Conservatism, and Earnings Quality written by Ralf Ewert and published by . This book was released on 2012 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: Earnings Management, Conservatism, and Earnings Quality reviews and illustrates earnings management, conservatism, and their effects on earnings quality in an economic modeling framework. Both earnings management and conservative accounting introduce biases to financial reports. The fundamental issue addressed is what economic effects these biases have on earnings quality or financial reporting quality. Earnings Management, Conservatism, and Earnings Quality reviews analytical models of earnings management and conservatism and shows that both can have beneficial or detrimental economic effects, so a differentiated view is appropriate. Earnings management can provide additional information via the financial reporting communication channel, but it can also be used to misrepresent the firm's position. What the authors find is that similar to earnings management, conservatism can reduce the information content of financial reports if it suppresses relevant information, but it can be a desirable feature that improves economic efficiency. The approach to study earnings management, conservatism, and earnings quality is based on the information economics literature. A variety of analytical models are reviewed that capture the effects and subtle interactions of managers' incentives and rational expectations of users. The benefit of analytical models is to make precise these, often highly complex, strategic effects. They offer a rigorous explanation for the phenomena and show that sometimes conventional wisdom does not apply. The monograph is organized around a few basic model settings, which are presented in simple versions first and then in extensions to elicit the main insights most clearly. Chapter 2 presents the basic rational expectations equilibrium model with earnings management and rational inferences by the capital market. Chapter 3 is devoted to earnings quality and earnings quality metrics used in many studies. Chapter 4 studies conservatism in accounting. Finally, the authors examine the interaction between conservatism and earnings management. Each chapter ends with a section containing a summary of the main findings and conclusions.

The Oxford Handbook of Strategy Implementation

Download The Oxford Handbook of Strategy Implementation PDF Online Free

Author :
Publisher : Oxford University Press
ISBN 13 : 0190650230
Total Pages : 553 pages
Book Rating : 4.1/5 (96 download)

DOWNLOAD NOW!


Book Synopsis The Oxford Handbook of Strategy Implementation by : Michael A. Hitt

Download or read book The Oxford Handbook of Strategy Implementation written by Michael A. Hitt and published by Oxford University Press. This book was released on 2017 with total page 553 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leading scholars examine the crucial role of implementation influencing how business and managerial strategies produce returns. They focus on governance, resources, human capital, and accounting-based control systems, advancing our understanding of strategy implementation and identifying opportunities for future research on this important process.

The Quality of Accruals and Earnings - and the Market Pricing of Earnings Quality

Download The Quality of Accruals and Earnings - and the Market Pricing of Earnings Quality PDF Online Free

Author :
Publisher :
ISBN 13 : 9788778820013
Total Pages : pages
Book Rating : 4.8/5 (2 download)

DOWNLOAD NOW!


Book Synopsis The Quality of Accruals and Earnings - and the Market Pricing of Earnings Quality by :

Download or read book The Quality of Accruals and Earnings - and the Market Pricing of Earnings Quality written by and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: