EXTRAORDINARY ITEMS AND INCOME SMOOTHING: A POSITIVE ACCOUNTING APPROACH

Income Smoothing, Investor Reaction and Earnings Persistence

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...

Remittances and Income Smoothing

Remittances and Income Smoothing Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse ca...

Mental Accounting and Disaggregation Based on the Sign and Relative Magnitude of Income Statement Items

Current financial reporting guidance allows managers flexibility as to whether to disaggregate income statement items. Such flexibility is problematic if managers prefer to aggregate in some situations and disaggregate in others because we conjecture that investors’ evaluations of firms will predictably differ depending on whether performance information is shown in an aggregated or disaggregat...

A Relationship Between Income Smoothing Practices And Firms Value In Iran

Determinants of Different Accounting Methods Choice in Tanzania: A Positive Accounting Theory Approach

1.0 Introduction and motivation The purpose of this study is to investigate the factors which influence the choices of accounting policies by managers of companies in Tanzania. Previous studies show that managers may choose income increasing or income decreasing accounting policies in reporting financial results (Beattie et al., 1994; Astami & Tower, 2006; Bowen & Shores, 1995).These studies al...