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Prior studies document both an improvement and deterioration in the future operating performance of firms engaging in real earnings management (REM) to meet earnings benchmarks. These results suggest that some firms use REM to signal their favorable prospects, whereas others use REM...
Persistent link: https://www.econbiz.de/10012915584
profit margin provide incremental information for predicting changes in future return on assets. After controlling for … earnings quality factors, the incremental usefulness of this accounting signal increases significantly. Second, this paper … profitability. In doing so, I incorporate the main drivers of earnings quality (i.e. fundamental performance and the accounting …
Persistent link: https://www.econbiz.de/10010520353
This report updates and expands earlier studies to look at the profitability of $349.7 billion of buybacks executed from 2000 through early 2010 by a sample of 275 corporations. The sample companies, drawn mainly from the technology sector, enjoy total equity market value today of $945.6...
Persistent link: https://www.econbiz.de/10013133330
This report expands through early 2011 studies of the raw performance (profitability) of $383.5 billion of buybacks executed since 2000 by a sample of 252 corporations. The sample companies, drawn mainly from the technology sector, enjoy total equity market value today of $1.240 trillion. 69.8%...
Persistent link: https://www.econbiz.de/10013122832
This paper investigates whether the desire to achieve higher equity valuations induces conglomerates to manipulate their segment earnings. I extend the Stein (1989) model to a multi-segment setting and show that conglomerates have incentives to transfer profits from segments operating in...
Persistent link: https://www.econbiz.de/10013085431
: • Largest percentage profit (return on cash invested in buybacks)• Largest percentage benefit (consequent change in stock price …
Persistent link: https://www.econbiz.de/10013158168
audit quality among profit firms; informs auditor reporting decisions such that when firm profitability is lower, auditors … as a going concern; and, is an important consideration in audit pricing only for profit firms. These inferences continue …
Persistent link: https://www.econbiz.de/10012833625
to shareholders. We discuss the profit margin, the return on net assets, the return on equity, earnings per share, and … the accounting return on net assets and the accounting return on equity, examining the impact of associated changes in … difference between the accounting return on equity and the total shareholder return, exploring the impact on the latter of …
Persistent link: https://www.econbiz.de/10012835164
Analysis of profitability is more important to every business organization. Profitability gives an idea of operating efficiency to a firm. Higher profitability shows high performance and lower will indicate the lower performance. The study used only secondary data to attain the objectives of the...
Persistent link: https://www.econbiz.de/10012837401
the ROE can be improved?6. The ROE depends on net profit margin, turnover of CE and financial leverage. When financial … Economic Profit (EP) and the Economic Value Added (EVA). What is the EP and what does it indicate? What is EVA an what does it …
Persistent link: https://www.econbiz.de/10012867915