Prior literature documents the usefulness of the DuPont disaggregation for predicting firms future profitability …. However, there is a lack of research examining how earnings quality affects forecasts of profitability. This paper explores … whether different earnings quality factors moderate the accuracy of profitability forecasts. This study contributes to the …

profitability thresholds. We assume that a given threshold is important when a bank manages earnings in order to surpass it. As a … result we can observe discontinuities in profitability distributions around the relevant thresholds. This method allowed us … profitability decreases. This outcome is insensitive to the divisions of the sample according to the criteria of: geographical …