Purpose – This study aims at investigating whether income smoothing helps to reduce volatility in reported earnings and which firms are more inclined to be engaged in income smoothing. Design/Methodology/Approach – We used negative correlation between pre-managed earnings of a firm and its...

Purpose The purpose of this paper is to investigate whether income smoothing helps to reduce volatility in reported earnings and which firms are more inclined to be engaged in income smoothing. Design/methodology/approach The authors used negative correlation between pre-managed earnings of a...

Purpose This study aims to investigate information risk in relation to stock returns of a firm and whether information risk is priced in China. Design/methodology/approach The authors used accruals quality (AQ) as their measure of information risk and performed Fama-Macbeth regressions to...

Purpose – The purpose of this paper is to investigate information risk in relation to cost of capital and, also, whether information risk is a priced risk factor in China. Design/methodology/approach – The authors used accruals quality (AQ) as the measure of information risk and employed...