Does Income Smoothing Improve Earnings Informativeness?
نویسندگان
چکیده
منابع مشابه
Institutional Ownership, Business Cycles and Earnings Informativeness of Income Smoothing: Evidence from Iran
Managers engage in income smoothing either to communicate private information about future earnings to investors (informativeness hypothesis) or to distort financial performance for opportunistic purposes (opportunism hypothesis). Business cycles and the monitoring role of institutional ownership may affect the earnings informativeness of income smoothing. The purpose of this research is to exa...
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The main objective of this study was to investigate the effect of income smoothing on investors reaction to Earnings Persistence of companies listed on the Stock Exchange in Tehran. The population of the study was companies listed on the Stock Exchange in Tehran, the sample size due to screening method and after removing outliers is equal to 118 companies. In this study, earnings persistence an...
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Theory suggests that managers issue earnings forecasts to reduce information asymmetry. An earnings forecast is more effective in reducing information asymmetry if it contains earnings news that is relatively more informative about the firm’s value. We hypothesize that a manager is more likely to issue an earnings forecast if investors perceive that earnings are more informative. We measure ear...
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This study draws on prior research on corporate governance and examines whether the informativeness of earnings, proxied by the earnings±returns relationship, varies with the fraction of outside directors serving on the board and board size. The results suggest that earnings of ®rms with the smallest boards in the sample (with a minimum of ®ve board members) are perceived as being more informat...
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ژورنال
عنوان ژورنال: The Accounting Review
سال: 2006
ISSN: 0001-4826,1558-7967
DOI: 10.2308/accr.2006.81.1.251