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...

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We provide a framework for understanding how disability risk and features of the disability insurance program in the US affect individual consumption and labor supply behavior in an explicit life-cycle setting. We decompose earnings risk into disability shocks (that reduce the ability to work) and shocks to general productivity. We identify structural parameters of the model using indirect infe...

This research aimed to study the behavior of real earnings management and earnings management based on accruals to achieve an average profitability of listed companies in Tehran Stock Exchange. In this study, we focus on the optional operating cash flow, optional cost and production cost as real earnings management representatives as well as discretionary accruals as an earnings management acco...

This paper examines the relation between smooth past earnings performance and the credibility of voluntary management earnings forecasts. Specifically, using strings of increasing earnings per share as our measure of past performance, we demonstrate that both analyst forecast revisions and stock price reactions around management earnings forecasts are more pronounced when the firm has posted a ...

This study examines the relation of corporate earnings management to firm size. We observe that firm size plays differing roles in earnings management: Small-sized firms engage in more earnings management to avoid reporting losses than largeor medium-sized firms. On the other hand, largeand medium-sized firms exhibit more aggressive earnings management to avoid reporting earnings decreases than...

Modern portfolio theory is based on the relationship between risk and return and in this paper, specific uncertainty conditions are introduced as ambiguity which affects the asset pricing. Also, the relationship between risk, ambiguity and return is examined. First, ambiguity is estimated by the means of three-variable and main component method, trading volume, ask-bid spread, error of earnings...

In this paper, I examine a new approach for measuring earnings quality, defined as the closeness of reported earnings to “permanent earnings,” based on firm decisions with regard to capital and labor investments. Specifically, I measure earnings quality as the contemporaneous association between changes in the levels of capital and labor investment and the change in reported earnings. This appr...

Long Term Earnings Inequality, Earnings Instability and Temporary Employment in Spain: 1993–2000 This paper provides a longitudinal perspective on changes in Spanish male earnings inequality for the period 1993-2000, by decomposing the earnings covariance structure into its permanent and transitory parts. According to the Spanish sample of the European Community Household Panel, cross-sectional...