The role of accrual estimation errors to determine accrual and earnings quality
نویسندگان
چکیده
منابع مشابه
Accrual Reversals, Earnings and Stock Returns
Accounting accruals anticipate future economic benefits. They are intended to reverse upon the realization of the anticipated future benefits, such that their reversals have no net impact on future earnings. In practice, however, we show that extreme accruals exhibit a high frequency of subsequent reversals that do impact future earnings. We demonstrate that these reversals explain a number of ...
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Prior accounting research argues that diminishing marginal returns on new investments drive lower persistence of accruals relative to cash flows. Macroeconomic research documents that marginal profitability is counter-cyclical, which implies that diminishing marginal returns on new investments are more pronounced during periods of expansions than recessions. Linking the cyclicality of diminishi...
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Earnings management is an important part of current accounting studies. Many of those studies concentrate on accruals. This study critically evaluates frequently used accrual models. The Jones model was the first econometric approach to estimating discretionary accruals. Even though it is subject to several limitations, such as model misspecification, omitted-variables, and errors-in-variables ...
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ژورنال
عنوان ژورنال: International Journal of Accounting & Information Management
سال: 2016
ISSN: 1834-7649
DOI: 10.1108/ijaim-04-2015-0022