Results 241 to 250 of about 52,974 (284)

Highly Valued Equity and Discretionary Accruals

Journal of Business Finance and Accounting, 2010
Abstract:  Overvalued equity provides a strong incentive for managers to report earnings that do not disappoint the market ( Jensen, 2005). We find that this can be extended to highly valued equity more generally. In the year following the classification as highly valued and compared to firms with less extreme valuations, highly valued firms have ...
Robert E. Houmes, Terrance R. Skantz
exaly   +2 more sources

Earnings and discretionary accruals

Managerial and Decision Economics, 2021
Earnings management is a concerning issue for investors and regulators as it reduces the informativeness of financial reporting. Discretionary accruals are acknowledged to be proxies for earnings management. The study is conducted on firms in the US markets from 1975 to 2012, and the quantitative methodology is applied.
Yasmin Jamadar, Tze San Ong, Asna Atqa Abdullah, Fakarudin Kamarudin   +3 more
openaire   +1 more source

External Monitoring, ESG, and Information Content of Discretionary Accruals

Sustainability, 2022
Discretionary accruals reflect the management’s accounting choices made within the flexibility of accounting standards. Discretionary accruals can be used by the management to better reflect the economic value of the firm and to signal their ...
Kihoon Hong, So Yean Kwack, Jinhee Kim
exaly   +2 more sources

Firm growth and the pricing of discretionary accruals

Review of Quantitative Finance and Accounting, 2012
This paper examines how firm growth conditions the pricing of discretionary accruals. Given the rich growth opportunities and high information asymmetry in high-growth firms, we expect that managers have incentives to use discretionary accruals, especially income increasing (positive) discretionary accruals, to signal favorable private information to ...
Qiang Wu, Ashok Robin
openaire   +1 more source

Characteristics of Institutional Investors and Discretionary Accruals

International Journal of Accounting & Information Management, 2003
This paper examines the differential effects of institutional non-blockholders (NONB) and active institutional blockholders (ACTB) on earnings management behavior, as measured by discretional accruals. We propose that NONB stimulates and ACTB mitigates earnings management.
Agnes Cheng, Austin L. Reitenga
openaire   +1 more source

The information content of discretionary accruals during systemic crises

Journal of Applied Accounting Research, 2020
Purpose – By analyzing the relationship between discretionary accruals and information asymmetry throughout the latest global financial crisis, this paper deepens our understanding of the effect of managerial discretion on the informativeness of earnings
Nicola Moscariello, Pietro Fera
exaly   +2 more sources

Performance matched discretionary accrual measures

Journal of Accounting and Economics, 2001
Prior research shows that extant discretionary accrual models are misspecified when applied to firms with extreme performance. Nonetheless, use of such models in tests of earnings management and market efficiency is commonplace in the literature. We examine the specification and power of the test based on a performance-matched discretionary accrual ...
S.P. Kothari, Andrew J. Leone, Charles E. Wasley   +2 more
openaire   +1 more source

Pricing of innate and discretionary accruals in Australian debt

Accounting and Finance, 2013
This paper addresses the conflicting evidence on the role of accruals in debt pricing. We show that the two subcomponents of accruals quality, innate and discretionary accruals, both impact the debt pricing. Higher innate accruals increases cost of debt,
Husam Aldamen
exaly   +2 more sources

Overvalued Equity and Discretionary Accruals

SSRN Electronic Journal, 2006
This paper provides evidence consistent with the overvaluation hypothesis (Jensen 2005). We categorize firms as overvalued if they are in the top quintile based on beginning of year price-earnings ratio, prior year abnormal return, or a classification technique that uses both the lagged price-earnings ratio and abnormal return.
Terrance R. Skantz, Robert Houmes
openaire   +1 more source

Auditor changes and discretionary accruals

Journal of Accounting and Economics, 1998
Abstract In a sample of auditor change firms we find that discretionary accruals are income decreasing during the last year with the predecessor auditor and generally insignificant during the first year with the successor. In addition, the income decreasing discretionary accruals are concentrated among firms expected to have greater litigation risk ...
Mark L. DeFond, K.R. Subramanyam
openaire   +1 more source