QUALITY OF EARNINGS

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Quality Of Earnings

Author : Thornton L. O'glove
ISBN : 9780684863757
Genre : Business & Economics
File Size : 54.92 MB
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Category: Business & Economics

Capital Market Implications Of Earnings Quality

Author : Bianca Ahrens
ISBN : 9783899369212
Genre : Business & Economics
File Size : 64.44 MB
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In his speech from 1998 the former chairman of the United States Securities and Exchange Commission (SEC) Arthur Levitt pointed out that trust "is the bedrock of our capital markets" and that this must not be shaken by the erosion of earnings quality. He made clear that it is the challenge of the whole financial community to counteract such a development. This thesis deals with the question whether the importance of earnings for the capital market varies with its quality. The question arises, because in recent years a large number of firm scandals has shaken the trust in the reliability of reported earnings. In order to properly address the research questions, the literature on earnings quality definitions, quality measures as well as implications of earnings quality on capital markets is reviewed and critically discussed. The author investigates whether well known results concerning capital market implications of earnings quality remain stable for all measures considered. She answers the question of how earnings quality affects firm value, cost of equity capital, and the accuracy of analysts' forecasts taking into account the effects of determinants of earnings quality.
Category: Business & Economics

Earnings Quality

Author : Jennifer Francis
ISBN : 9781601981141
Genre : Business & Economics
File Size : 72.85 MB
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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.
Category: Business & Economics

Financial Crises And Earnings Management Behavior

Author : Bruno Maria Franceschetti
ISBN : 9783319541211
Genre : Business & Economics
File Size : 86.49 MB
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This book approaches the question of the relation between financial crises and earnings management from two philosophical perspectives: positivism and critical realism. The results obtained using the positivist approach indicate that financial crises tend to have no consistent effect on earnings quality since managers’ earnings behavior does not differ from the pre-crisis to the crisis period. The author accordingly argues against the existence of a causal law based on a constant conjunction model (i.e., whenever a financial crisis happens, earnings management occurs) and concludes that financial crises cannot be seen as the cause of earnings management. The critical realism perspective, on the other hand, casts light on managers’ reasons for acting like an earnings manager; in conjunction with the more traditional positivist approach, it assists in refuting the idea of financial crises as a generative mechanism for earnings management. The author concludes by exploring other structures at work that might be responsible for earnings management. This book will be of interest to both academics and a wide range of professionals.
Category: Business & Economics

Financial Services

Author : M. Y. Khan
ISBN : 0070585857
Genre : FINANCIAL INFORMATIONS
File Size : 81.62 MB
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Category: FINANCIAL INFORMATIONS

Accounting

Author : Paul D. Kimmel
ISBN : 9780470377857
Genre : Business & Economics
File Size : 48.32 MB
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Motivate Accounting Students! Kimmel Accounting 3e, helps students hit the road with a practical set of tools, and the confidence they need to use those tools effectively in making business decisions. The goal is to introduce a new Principles of Accounting text that better reflects a more conceptual and decision-making approach to the material. The authors have taken a new "macro- to micro-" approach to the Principles of Accounting course by starting with a discussion of real financial statements first, rather than starting with the Accounting Cycle (although the Accounting Cycle is thoroughly covered in Chapters 3 and 4). The objective is to establish how a financial statement communicates the financing, investing, and operating activities of a business to users of accounting information. They motivate students by grounding the discussion in the real world, showing them the relevance of the topics covered to their future career.
Category: Business & Economics

Wages School Quality And Employment Demand

Author : David Card
ISBN : 9780199693382
Genre : Business & Economics
File Size : 66.70 MB
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David Card and Alan B. Krueger have made substantial contributions to the field of Labor Economics. Their influential work focuses on policy-relevant issues and spans vast and important topics, including: unemployment, minimum wage, migration, measurement error, unions, wage differentials among various groups in the US, labor demand, social insurance, and technological change. Card and Krueger have also been extremely influential in econometrics methodology; they were at the forefront of employing an 'experimental' approach in their research design and implementation. Both of these IZA prize winners have made significant methodological contributions on instrumental variable estimation, measurement error, regression discontinuity methods, and the use of 'natural' experiments. This book provides an overview of their most important work and is divided two main parts: the first section focuses on school quality and the differences in wages across groups in the US; the second part concentrates on the effect of changes in the minimum wage on employment and wage setting. In section introductions, Card and Krueger offer their insight into these two areas and discuss the historical context for their research.
Category: Business & Economics

Handbook Of Financial Analysis Forecasting And Modeling

Author : Jae K. Shim
ISBN : 0808015931
Genre : Business & Economics
File Size : 72.19 MB
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This comprehensive and authoritative resource provides full, unabridged text of the complete Internal Revenue Code in two volumes. CCH offers this tax information in a timely and reliable manner that business and tax professionals have come to expect and appreciate. This Winter Edition of Internal Revenue Code reflects all new statuatory tax changes through January 2006, including the 2005 Energy and Highway Tax Acts and the Katrina Emergency Tax Relief Act.
Category: Business & Economics