full, on-time, and with quality disclosure of financial information can lead to the transparency of such information and decreases information asymmetry. among the published information of firms, earnings are of priority importance attended by many users; therefore, the issue of the transparency of accounting earnings is of high importance. the aim of this study is investigating the accounting ...

This paper examines the differences in accrual-based and real earnings management across countries from the perspective of investor protection. Following prior research (Leuz et al., 2003), we hypothesize that accrual-based earnings management is more constrained by strict discipline in countries with stronger investor protection. For real earnings management in countries with stronger investor...

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...

We investigate whether the positive associations between discretionary accrual proxies and beating earnings benchmarks hold for comparisons of groups segregated at other points in the distributions of earnings, earnings changes, and analystsbased unexpected earnings. We refer to these points as ‘‘pseudo’’ targets. Results suggest that the positive association between discretionary accruals and ...

Mr. Crockett: May I make an analogy and see whether it conveys any insights? In the finance field, we think of technology and liberalization as having driven the enormous changes in financial markets. Technology enables the better pricing of risk; liberalization allows risk to be more efficiently managed and traded. Could one say that something similar is taking place in labor markets? Technolo...

In the 1990s, Colombia, the Dominican Republic, Ecuador, Costa Rica, and Brazil passed dual citizenship laws granting their expatriates the right to naturalize in the receiving country without losing their nationality of origin. I estimate the effects of these new laws on naturalization rates and labor market outcomes in the United States. Based on data from the 1990 and 2000 U.S. censuses, I f...

the purpose of this paper is to investigate the association between the intellectual capital of firms and their earnings quality. the research was conducted with 158 accepted companies and 948 firm-year observations from iran stock market. empirical studies were conducted based on hypothesis by value added intellectual coefficient as measures of intellectual capital and taking absolute value of...

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...

This paper uses Italian panel data from the private and public sectors and analyses earnings dynamics by applying the minimum distance estimator of Chamberlain (1984). We consider two main aspects of earnings careers. First, we estimate a measure of earnings growth heterogeneity, whereby quantifying to what extent the two sectors differ in the ability to differentiate remuneration of time-varyi...

Both prior research and the popular financial press suggest that earnings smoothing is associated with higher valuations, per dollar of reported earnings. Apparently, smoothing causes reported earnings to be a less noisy measure of “permanent” earnings that can be sustained over the longterm. We extend those results to examine whether earnings smoothing is associated with higher valuations per ...