because of specific characteristics of companies in specific industries such asconstruction industry, whose operation cycles are usually more than one fiscal year,there are different methods and policies for revenue recognition. errors inaccounting estimates in specific industries reduce the usefulness of accountinginformation. it makes reported profit in the financial statements vary from actu...

so far, the financial experts could not calculate independent earnings to have a necessary quality. in this case, they can reach a range of earnings, which show a more correct form of quality of earnings, of course with performing the suitable equitabilities. therefore, the concept of quality of earnings is not a fixed defining. however, it is a relative concept that depends to its relation to ...

This paper examines business cycle variation in the earnings-returns relation. Earnings are more persistent when growth rates are high (i.e., in an expansion) than when growth rates are low (i.e., in a recession). Earnings are more persistent when production is high (i.e., in a credit crunch period) than when production is low (i.e., in a reliquification period). Relatedly, earnings response co...

Because of transactions costs and investor/manager information asymmetries, internally generated funds should be less costly than funds raised by issuing shares. This suggests that as firms use more internal funds relative to external equity, their costs of equity capital will fall and the rate the market uses to discount unexpected earnings of such firms will be lower. We hypothesize that (1) ...

the aim of this study is to determine the effect of the income smoothing on the future earnings response coefficient taking into account the effect of the information environment. future earnings response coefficient is used as a measure for evaluation of stock price information content which represents the relationship between current stock returns and future earnings. information environment ...

Earnings nonresponse is currently about 30% in the CPS-ORG and 20% in the March CPS. Census imputes missing earnings by assigning nonrespondents the reported earnings of matched donors. Even if nonresponse is random, in a wage equation there exists severe “match bias” on coefficients attached to non-match imputation attributes (union status, industry, foreign-born, etc.) and imperfectly matched...

Significant changes in mean and median analysts’ forecasts errors documented in recent studies are not synchronized across commercial forecast databases over time and are, in large part, a function of the definitions and procedures that determine the reported earnings component of earnings surprises. In this study we describe a number of complications researchers face in drawing inferences from...