This paper uses a new approach to examine whether income smoothing garbles earnings information or improves the informativeness of past and current earnings about future earnings and cash flows. We measure income smoothing by the negative correlation of a firm s change in discretionary accruals...

We examine how heterogeneity in organizational structure affects private firm earnings quality in the European Union. Organizational structure refers to whether the firm is organized as a single legal entity (standalone) or as a business group. Private firms can be organized either way, while...

We examine how heterogeneity in organizational structure affects private firm earnings quality in the European Union. Organizational structure refers to whether the firm is organized as a single legal entity (standalone) or as a business group: the former are firms not controlling or controlled...

We examine how capitalization vs expensing of R&D costs affects how the firm manages earnings with R&D, and the economic consequences of the earnings management method. We focus on the period around the UK’s switch from UK GAAP, which allowed expensing, to IFRS, which mandated capitalization...