We investigate whether investors price accruals quality, our proxy for the information risk associated with earnings. Measuring accruals quality (AQ) as the standard deviation of residuals from regressions relating current accruals to cash flows, we find that poorer AQ is associated with larger costs of debt and equity. This result is consistent across several alternative specifications of the ...

During the year prior to management buyout (MBOs) announcements, some target firms exhibit abnormally high discretionary expenses in selling, general and administration, abnormally low discretionary accruals, and realize losses from asset sales. Higher discretionary expenses and losses from asset sales are associated with lower pre-MBO abnormal stock returns, especially for firms with higher in...

Discretionary accruals remain decade’s long measures to detect earnings management in empirical accounting research. The correctness of the specifications and test power information content for models remains unexplored based on samples most emerging market firms. Yet, country’s-based researchers have increasingly used different Jones-based discretionary proxy management. paper aims evaluate fo...

The purpose of this research is to determine the impact quality environmental disclosure, corporate governance, and assimetric information on discretionary accruals. In study, population mining companies that implement PROPER are listed Indonesia Stock Exchange between 2016 2020. Purposive sampling was used obtain data from 47 different companies. Multiple linear regression analysis performed a...

This paper aims to knows about profit reporting and describes the quality analysis of shareholders in Pandemic Era. The methods use is quantitative methods. test results prove that dividend distribution status has a positive relationship earnings (companies distribute dividends have better than companies do not dividends). Thus, pay are empirically proven higher discretionary accruals, standard...

The main purpose of this study is to examine whether the mandatory IFRS adoption within French listed companies provides higher earnings quality. More precisely, we study the impact of mandatory IFRS adoption on two approaches of earnings management: real and accruals-based earnings management. This study focuses on a sample of 1488 firm-year observations, 124 firms drawn from the 250 French-li...