Way back in 1934, Graham and Dodd observed the importance of earning power in investment theory. According to them, history of actual earning with a reasonable expectation should be approximated in future. The empirical study of Ball and Brown (1968) contends that of all the sources of...

This study investigated the effects of income smoothing and earnings quality on evaluating the performance of companies listed on the Tehran Stock Exchange. To do this research, we studied 96 companies among those listed within the years from 1999 to 2003. The data related to the performance...

We find that earnings quality (EQ) is reliably negatively correlated with market values of equity of firms listed on Jakarta Stock Exchange (IDX). The financial reporting process produces earnings viewed as increasingly “incomplete” for valuation purposes by the capital market despite moves...