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...

the study objects for investigating the possibility of activating both audit committee and board of directors for restricting the practices of earnings management phenomenon. to achieve this objective, a questionnaire had been developed and self-administered for a selected sample consists of 123 auditors working in jordan based on the simple random sampling method. the study first hypothesis is...

Analysts often provide forecasts of one-year ahead earnings, earnings two-year ahead, as well as long-term earnings growth rates. In our attempts to understand the properties of these contemporaneous multi-period earnings forecasts, we begin by examining whether analysts’ earnings forecasts can be described using the linear information dynamics (LID). We find that LID is an appropriate descript...

Analysts often provide forecasts of one-year ahead earnings, earnings two-year ahead, as well as long-term earnings growth rates. In our attempts to understand the properties of these contemporaneous multi-period earnings forecasts, we begin by examining whether analysts’ earnings forecasts can be described using the linear information dynamics (LID). We find that LID is an appropriate descript...

If a small firm effect exists, one would expect to see a trend towards proportionately greater investment in small firms. Among the most sensitive investors would be institutional investors who are constantly seeking to maximize their portfolio's rankings. This study examines changes in institutional investments on the basis of firm size, price/earnings ratios and Timeliness rankings. Instituti...

Earnings are an important contributor to value, but a deal’s harm to the balance sheet can more than offset the value of increased earnings. Of course you want to see earnings per share increase, but not if your share price ultimately drops. If your company has access to cheap currency (a low cost of borrowing or a high stock price), it is easy to do an accretive deal. However, your cheap curre...

Using a data set of Taiwanese female graduates in 2006, this study finds that height and earnings are positively correlated for full-time workers. However, it is not because tall individuals went to better colleges or received better grades (cognitive ability), not because they are gifted with superior physical strength or because they have participated in more extracurricular activities (non-c...

A number of articles have explored analysts' earnings estimates, analysts' forecasting ability and the reaction of stock prices to earnings announcements. The concern of this paper is the group of stocks whose earnings announcements constitute positive "earnings surprise" given a consensus of analysts' expected earnings. The consensus derives from a twenty quarter, seasonally adjusted earnings ...

A large body of accounting research in the past has documented the existence of conservatism and timeliness of income recognition as distinct factors which affect the returns-earnings relation. However, earnings are not the only measure of financial performance that is affected by conservatism. The aim of this paper is to examine the impact of conservatism on accrual measures and drivers, in th...

Anecdotal evidence shows that managers have plenty of discretion to manage the timing of write-offs to take action related to earnings management. In this paper, I examine whether write-offs are recorded in a timely manner. In particular, I investigate the association between asset write-offs and the market return over a long window as a metric of testing the timeliness of write offs. The resul...