Earnings Management Conservatism And Earnings Quality PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Earnings Management Conservatism And Earnings Quality PDF full book. Access full book title Earnings Management Conservatism And Earnings Quality.

Earnings Management, Conservatism, and Earnings Quality

Earnings Management, Conservatism, and Earnings Quality
Author: Ralf Ewert
Publisher:
Total Pages: 142
Release: 2012
Genre: Business & Economics
ISBN:
GET BOOK

Download Earnings Management, Conservatism, and Earnings Quality Book in PDF, ePub and Kindle

Earnings Management, Conservatism, and Earnings Quality reviews and illustrates earnings management, conservatism, and their effects on earnings quality in an economic modeling framework. Both earnings management and conservative accounting introduce biases to financial reports. The fundamental issue addressed is what economic effects these biases have on earnings quality or financial reporting quality. Earnings Management, Conservatism, and Earnings Quality reviews analytical models of earnings management and conservatism and shows that both can have beneficial or detrimental economic effects, so a differentiated view is appropriate. Earnings management can provide additional information via the financial reporting communication channel, but it can also be used to misrepresent the firm's position. What the authors find is that similar to earnings management, conservatism can reduce the information content of financial reports if it suppresses relevant information, but it can be a desirable feature that improves economic efficiency. The approach to study earnings management, conservatism, and earnings quality is based on the information economics literature. A variety of analytical models are reviewed that capture the effects and subtle interactions of managers' incentives and rational expectations of users. The benefit of analytical models is to make precise these, often highly complex, strategic effects. They offer a rigorous explanation for the phenomena and show that sometimes conventional wisdom does not apply. The monograph is organized around a few basic model settings, which are presented in simple versions first and then in extensions to elicit the main insights most clearly. Chapter 2 presents the basic rational expectations equilibrium model with earnings management and rational inferences by the capital market. Chapter 3 is devoted to earnings quality and earnings quality metrics used in many studies. Chapter 4 studies conservatism in accounting. Finally, the authors examine the interaction between conservatism and earnings management. Each chapter ends with a section containing a summary of the main findings and conclusions.

Earnings quality and earnings management

Earnings quality and earnings management
Author: Sanjay Wikash Bissessur
Publisher: Rozenberg Publishers
Total Pages: 217
Release: 2005
Genre:
ISBN: 9051709870
GET BOOK

Download Earnings quality and earnings management Book in PDF, ePub and Kindle

Earnings Quality

Earnings Quality
Author: Jennifer Francis
Publisher: Now Publishers Inc
Total Pages: 97
Release: 2008
Genre: Business & Economics
ISBN: 1601981147
GET BOOK

Download Earnings Quality Book in PDF, ePub and Kindle

This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.

Earnings Quality

Earnings Quality
Author: Elisa Menicucci
Publisher: Springer Nature
Total Pages: 154
Release: 2019-12-21
Genre: Business & Economics
ISBN: 3030367983
GET BOOK

Download Earnings Quality Book in PDF, ePub and Kindle

This book provides an overview of earnings quality (EQ) in the context of financial reporting and offers suggestions for defining and measuring it. Although EQ has received increasing attention from investors, creditors, regulators, and researchers in different areas, there are various definitions of it and different approaches for its measurement. The book describes the relationship between EQ and earnings management (EM) since they can be considered related challenges, especially in the context of international financial reporting standards (IAS/IFRSs). EM occurs when managers make discretionary accounting choices that are regarded as either an efficient communication of private information to improve the informativeness of a firm’s current and future performance, or a distorting disclosure to mislead the firm’s true performance. The intentional manipulation of earnings by managers, within the limits allowed by the accounting standards, may alter the usefulness of financial reporting and lead to lower quality of earnings. The use of fair value in financial reporting has created a current debate about the impact it might have on EQ. At times, the high subjectivity in estimating fair value can allow opportunities for the exercise of management judgments and intentional bias, which can reduce the quality of financial reporting. Management discretion can result in high EM and hence in a reduction of EQ. Particularly during difficult financial periods, managers engage in EM to mask the negative effects of the turmoil, and in such circumstances accruals and earnings smoothing are attempts to reduce abnormal variations of earnings in such circumstances. This book is a valuable resource for those interested in wider perspectives on EQ and it adds to the research studies on this topic in the context of financial reporting.

The Effect of Accounting Conservatism on Earning Quality

The Effect of Accounting Conservatism on Earning Quality
Author: Marselinus Asri
Publisher:
Total Pages: 31
Release: 2017
Genre:
ISBN:
GET BOOK

Download The Effect of Accounting Conservatism on Earning Quality Book in PDF, ePub and Kindle

The purpose research is to examine other variables that also affect the relationship between conservatism and earnings quality. Good Corporate Governance is a set of mechanisms that can protect minority shareholders from expropriation by managers and insider shareholders with an emphasis on legal mechanisms.Data Population are companies listed in Indonesia Stock Exchange during the period 2010-20015. The sample selection is based on purposive sampling method with the purpose of obtaining a representative sample. An Alternative measure of accounting conservatism used is the instrumental variables of Accounting conservatism (VIKV) developed by Lo (2005). The quality of earnings can be measured through discretionary accruals calculated by way of setting aside total accruals (TACC) and nondiscretionary accruals (NDACC). In calculating DACC, Modified Jones Model is used because it is considered better among other models to measure earnings management (Dechow et al., 1995).The results of this study indicate that the Instrumental Variables Conservatism (VIK) has a significant positive effect on the Earning Quality. This means that management positively signals the application of accounting conservatism within the company and has an impact on improving the quality of earnings. The next investor is expected to provide more valuations by providing a high premium for the company's stock price.

Introduction to Earnings Management

Introduction to Earnings Management
Author: Malek El Diri
Publisher: Springer
Total Pages: 120
Release: 2017-08-20
Genre: Business & Economics
ISBN: 3319626868
GET BOOK

Download Introduction to Earnings Management Book in PDF, ePub and Kindle

This book provides researchers and scholars with a comprehensive and up-to-date analysis of earnings management theory and literature. While it raises new questions for future research, the book can be also helpful to other parties who rely on financial reporting in making decisions like regulators, policy makers, shareholders, investors, and gatekeepers e.g., auditors and analysts. The book summarizes the existing literature and provides insight into new areas of research such as the differences between earnings management, fraud, earnings quality, impression management, and expectation management; the trade-off between earnings management activities; the special measures of earnings management; and the classification of earnings management motives based on a comprehensive theoretical framework.

Earnings Quality, Profit at Risk, Conservatism, Earnings Management, Objectivity and Why Accounting Allocations Matter

Earnings Quality, Profit at Risk, Conservatism, Earnings Management, Objectivity and Why Accounting Allocations Matter
Author: Roger J. Willett
Publisher:
Total Pages: 48
Release: 2013
Genre:
ISBN:
GET BOOK

Download Earnings Quality, Profit at Risk, Conservatism, Earnings Management, Objectivity and Why Accounting Allocations Matter Book in PDF, ePub and Kindle

Earnings quality, conservative accounting and earnings management, are interpreted in a variety of ways in theory and empirical research in the accounting literature. Little attention is paid, in defining these concepts, to the accounting measurement procedures that generate accounting numbers or to how they reflect the underlying economic fundamentals of firm activities. This paper focuses on the statistical properties imparted to accounting earnings by accounting measurement practices. Accuracy, objectivity and impartiality in making accounting allocations and honesty and timeliness in correcting errors determine the level of earnings quality and the extent of earnings management. Conservatism is seen as a concept that relates to the risk in profit, rather than to its return element. Statistically, greater precision in accounting allocations leads to greater quality of earnings as a naturally conservative estimate of profit. Inaccurate, subjective or dishonest capitalization of expenditure is the main threat to conservatism and the quality of earnings. Formulae necessary to construct confidence intervals for reported earnings are provided.

Earnings Management. The Influence of Real and Accrual-Based Earnings Management on Earnings Quality

Earnings Management. The Influence of Real and Accrual-Based Earnings Management on Earnings Quality
Author:
Publisher: GRIN Verlag
Total Pages: 81
Release: 2024-01-31
Genre: Business & Economics
ISBN: 3964875953
GET BOOK

Download Earnings Management. The Influence of Real and Accrual-Based Earnings Management on Earnings Quality Book in PDF, ePub and Kindle

Master's Thesis from the year 2019 in the subject Business economics - Accounting and Taxes, University of Duisburg-Essen, course: Master Thesis, language: English, abstract: This paper delves into various theories and approaches, aiming to define and differentiate earnings management from related concepts such as fraud, expectation management, and impression management. It explores the goals and incentives driving earnings management, including maximizing or minimizing earnings, beating targets, and smoothing. At the onset of the new millennium, corporate scandals rocked the business world, eroding trust in management, boards of directors, and the accounting profession. In response, regulations and policies aimed at enhancing corporate governance and financial reporting were swiftly implemented. The credibility, clarity, and consistency of financial reporting practices play a pivotal role in enabling investors to make informed decisions. Accurate and fair financial performance representations, as opposed to inflated and misleading figures, are essential for market players, including shareholders and creditors. Investors rely on audited financial reports to guide their investment decisions, underscoring the critical importance of accuracy and reliability in publicly available financial disclosures. Auditors, by reducing the risk of material misstatement, ensure the integrity of the information disclosed in a company's financial statements. Management, with the goal of achieving promised targets and ensuring the company's existence, may engage in earnings management as a strategic contribution to corporate policy. Financial reporting serves as a means to distinguish well-performing companies from their counterparts, facilitating efficient resource allocation and empowering stakeholders to make effective decisions. The disclosed earnings results significantly impact a firm's overall business activities and management decisions, particularly in satisfying analysts' expectations, which can influence equity value. While accounting standards play a role, the quality of financial statements is more influenced by company-specific and institutional factors shaping managers' incentives. These factors lead to financial reporting practices being viewed as the outcome of a cost-benefit assessment.

Comparative Research on Earnings Management, Corporate Governance, and Economic Value

Comparative Research on Earnings Management, Corporate Governance, and Economic Value
Author: Vieira, Elisabete S.
Publisher: IGI Global
Total Pages: 433
Release: 2021-02-12
Genre: Business & Economics
ISBN: 1799875989
GET BOOK

Download Comparative Research on Earnings Management, Corporate Governance, and Economic Value Book in PDF, ePub and Kindle

New trends are emerging regarding earnings management and corporate governance showing similarities and striking differences in the practices of different countries and economies. These new trends currently shape the field of modern corporate governance with crucial issues being looked at in governance law and practices, accounting systems, earnings quality and management, stakeholder involvement, and more. In order to advance these new avenues in corporate governance, research looks at accounting policies firms use in different opportunistic circumstances in order to manage earnings, the corporate governance practices in different countries, firm performance, and other dimensions of companies. The understanding of these topics is beneficial in understanding the current state of different types of firms and their practices in modern times. Comparative Research on Earnings Management, Corporate Governance, and Economic Value is focused on the investigation of key challenges and perspectives of corporate governance and earnings management and outlines possible scenarios of its development. The chapters explore this new avenue of research and cover theoretical, empirical, and experimental studies related to different themes in the global context of earnings management and corporate governance. This book is ideal for economists, businesses, managers, accountants, practitioners, stakeholders, researchers, academicians, and students who are interested in the current issues and advancements in corporate governance and earnings management.

Accounting Conservatism and Earning Quality

Accounting Conservatism and Earning Quality
Author: Marselinus Asri
Publisher:
Total Pages: 42
Release: 2017
Genre:
ISBN:
GET BOOK

Download Accounting Conservatism and Earning Quality Book in PDF, ePub and Kindle

The purpose research is to examine other variables that also affect the relationship between conservatism and earnings quality. Good Corporate Governance is a set of mechanisms that can protect minority shareholders from expropriation by managers and insider shareholders with an emphasis on legal mechanisms.Data Population are companies listed in Indonesia Stock Exchange during the period 2010-20015. The sample selection is based on purposive sampling method with the purpose of obtaining a representative sample. The results of this study indicate that the Instrumental Variables Conservatism has a significant positive effect on the Earning Quality. This means that management positively signals the application of accounting conservatism within the company and has an impact on improving the quality of earnings. The next investor is expected to provide more valuations by providing a high premium for the company's stock price.