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Implications of Nondiscretionary Accruals for Earnings Management and Market-Based Research

Dechow, Patricia; Sabino, Jowell S.; Sloan, Richard G. - 2005

nondiscretionary accrual components of earnings …

Persistent link: https://www.econbiz.de/10014222205

Audit Partner Tenure, Audit Firm Tenure, and Discretionary Accruals : Does Long Auditor Tenure Impair Earnings Quality?

Chen, Chih-Ying; Lin, Chan-Jane; Lin, Yu-Chen - 2013

Mandatory audit partner rotation has been adopted in certain countries while audit firm rotation is still being debated in many places. Most of the extant research on the relation between auditor tenure and earnings quality provides evidence at the audit firm level. However, since audit firm...

Persistent link: https://www.econbiz.de/10014224437

Measuring the Pervasiveness of Earnings Management from Quarterly Accrual Volatility

Gu, Zhaoyang; Lee, Chi-Wen Jevons; Rosett, Joshua G. - 2008

measure the pervasiveness of earnings management (PEM) using the properties of quarterly accrual volatility. The PEM index can … to mean-shifting studies in the literature, our measure based on accrual volatility yields two major advantages. First …-perspective on the overall patterns in earnings management. The methodology based on accrual volatility can address issues like the …

Persistent link: https://www.econbiz.de/10014118787

Do Analysts and Auditors Use Information in Accruals?

Bradshaw, Mark T; Richardson, Scott A.; Sloan, Richard G. - 2004

Existing research indicates that firms with high accruals are more likely to experience future earnings problems, but that investors' expectations, as reflected in stock prices, do not appear to anticipate these problems. In this paper, we directly examine the published opinions of two types of...

Persistent link: https://www.econbiz.de/10014123044

Do Models of Discretionary Accruals Detect Actual Cases of Fraudulent and Restated Earnings? An Empirical Evaluation

Jones, Keith L.; Krishnan, Gopal V.; Melendrez, Kevin - 2007

-fraudulent restatements of financial statements, and nine competing models of discretionary accruals, accrual estimation errors (Dechow and … that the accrual estimation errors exhibit the strongest association with the existence and the magnitude of fraud and non … discretionary accruals in detecting smaller fraud. The accrual estimation errors have incremental explanatory power over total …

Persistent link: https://www.econbiz.de/10014058931

Economic Uncertainty and Earnings Management

Stein, Luke C.D. - 2016

In the presence of managerial short-termism and asymmetric information about skill and effort provision, firms may opportunistically shift earnings from uncertain to more certain times. We document that firms report more negative discretionary accruals when financial markets are less certain...

Persistent link: https://www.econbiz.de/10012997009

Audit Committee Interlocks and the Contagion of Accrual-Based and Real Earnings Management

Dharwadkar, Ravi - 2016

Cohen et al. (2008) document that firms switched from accrual-based earnings management (AEM) to real earnings …

Persistent link: https://www.econbiz.de/10012999304

Asymmetrically Timely Loss Recognition and the Accrual Anomaly

Patatoukas, Panos N. - 2016

transitory negative accrual items. A direct implication of asymmetrically timely loss recognition is asymmetry in the persistence … of accruals depending on whether the firm experiences a gain or a loss in the current year: accruals should be less … persistent for loss years relative to profit years. If investors naively fixate on total earnings, however, conditional …

Persistent link: https://www.econbiz.de/10013003806

The Behaviour of Earnings, Accruals and Impairment Loss of Failed New Zealand Finance Companies

Kabir, Humayun - 2017

This study examines the behaviour of earnings, accruals and impairment losses of failed ﬁnance companies in New Zealand. It draws on conservatism in the development of research hypotheses about accounting variables that are likely to contain clues to future failures of ﬁnance companies. The...

Persistent link: https://www.econbiz.de/10012971346

Management Earnings Forecasts and Target Ratcheting : From the Perspective of Abnormal Accruals

Uchida, Koichi - 2017

This paper analyzes earnings management for the current year and the revision of management earnings forecasts (MEF) for the next year. It reports that the ratchet effect can be observed at the managerial level. Principals, who do not hold as much comprehensive information on productivity as...

Persistent link: https://www.econbiz.de/10012949592