The objective of this paper is to examine the impacts stock market segmentations (SMS) and surplus free cash flow (SFCF) on income-increasing discretionary accruals. study also provides initial evidence regarding influence audit quality (AQ) as a moderating variable those relationships. A sample non-financial firms was taken from list Amman Stock Exchange over period 2013-2019. Using Huber-Whit...

In this study, I investigate whether market learning explains the absence of the accrual anomaly in recent years by examining three conditions associated with the presence of the anomaly in prior research: (i) a differential relation between future earnings and cash flows versus accruals, (ii) incorrect weighting of cash flows and accruals by investors when predicting earnings, and (iii) associ...

This paper examines the link between the amount of estimation needed during the accrual generating process and the persistence of the accruals portion of earnings. We measure the amount of estimation needed during the accrual generating process using the number of estimation-related linguistic cues in the notes to the financial statements and the critical accounting policies section of the mana...

Prior research has estimated piece-meal the determinants of audit fees, non-audit fees and abnormal accruals. Intuition, informal analysis, and a variety of theories suggest that audit fees, non-audit fees, and abnormal accruals are jointly determined. We address this endogeneity issue by modeling the confluence of audit fees, fees for non-audit services and abnormal accruals in a system of sim...

This study documents a subtle and counter-intuitive interaction between operating cash flow (CFO) and accruals, and their association with future stock returns. While the two strategies should by construction capture similar anomalies, we find evidence in two large stock markets that they appear distinct, and that returns to these strategies are strongly negatively correlated. We show that the ...

Purpose – The main objective of the paper is establishing characteristics Q-Test and EQ‑Score measures as alternative tools for assessing earnings quality public companies. Research method estimation was prepared basing on analytical formulas Putman et al., Gullet al. models. exemplification research studies were conducted companies classified in WIG‑DIV index Warsaw Stock Exchange 2016–2020. R...

Corporate social responsibility (CSR) involves multiple activities and is influenced by the cultural legal environment of country in which a firm located. This study examines role audit committees’ (AC) financial expertise relationship between CSR earnings quality Korean firms with high levels CSR. Using multivariate analysis, it investigates whether ACs that include members accounting expertis...

Purpose This study examines whether Brazilian health insurance companies (HICs) engage in earnings management through discretionary accruals or operational decisions by refraining from reporting a low indicator of sustainability the market (IDSM). Design/methodology/approach The used Jones and Modified models to identify model described Roychowdhury estimate abnormal behaviors decisions. Data c...

This research investigates the relationship between profitability and earnings management in Indonesian banks listed on Indonesia Stock Exchange (IDX) during Covid-19 pandemic. article contributes to a novelty by exploring opportunistic behavior global crisis phenomenon. We use Return Asset (ROA), Equity (ROE), Net Profit Margin (NPM) as index Discretionary Accruals (DACC) index. The result of ...