Results 121 to 130 of about 1,115 (162)

The Earnings Smoothing Potential of Systematic Depreciation

Abacus, 1998
Ample evidence exists that managers attempt to use ‘artificial’ choices concerning alternative accounting procedures for classification, valuation and allocation of transactions to smooth reported periodic income or earnings series. However, the actual smoothing effect of such choices and their influence on the properties of earnings numbers is unknown.
John Hillier, Michael McCrae
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Accounting for Asset Sales: The Effect on Earnings Smoothing

SSRN Electronic Journal, 2021
We examine whether accounting rules can influence gains trading activities in financial institutions. Gains trading occurs when managers strategically sell invested assets to affect earnings. We focus on the U.S. insurance industry, where Life insurers are subject to a rule that requires them to amortize realized capital gains and losses over the ...
Evan Eastman, Kyeonghee Kim, Marc A. Ragin   +2 more
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Managerial optimism and earnings smoothing

Journal of Banking & Finance, 2014
Abstract This paper empirically examines how CEO optimism affects earnings smoothing and earnings surprises. The main finding is that optimistic managers smooth earnings more than rational managers and are associated with smaller (in absolute value) earnings surprises.
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Smoothing income in anticipation of future earnings

Journal of Accounting and Economics, 1997
Abstract Recent theory argues that concern about job security creates an incentive for managers to smooth earnings in consideration of both current and future relative performance. We find support for this theory. Our evidence suggests that when current earnings are ‘poor’ and expected future earnings are ‘good’, managers ‘borrow’ earnings from the ...
Defond, ML, Park, CW
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Optimal smoothing of accounting earnings

IMA Journal of Management Mathematics, 1999
Accountants seeking to estimate the profitability of a firm via the calculation of earnings utilize information about the number and current lifespan of unfinished activities by incorporating a smoothing device—depreciation—into their calculations.
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Carbon emission trading scheme and earnings smoothness

Journal of Accounting Literature
Purpose The objective of this study is to investigate how the implementation of an Emission Trading Scheme (ETS) influences an ETS-regulated firm’s level of earnings smoothness. Design/methodology/approach Using a staggered difference ...
June Cao, Zijie Huang, Ari Budi Kristanto, Millie Liew   +3 more
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Effect of accounting discretion on ability of managers to smooth earnings

Journal of Accounting and Public Policy, 2005
Managers use smooth earnings patterns to communicate their firm's superior earnings prospects to investors. These managers require a knowledge of future earnings (or foresight) in order to determine the level of smoothing in each financial period. However, with discretion in GAAP, low foresight managers can also smooth earnings.
Hwee Cheng Tan, Karim Jamal
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Earnings Smoothing Activities of Firms to Manage Credit Ratings

SSRN Electronic Journal, 2012
Credit ratings have significant implications for firms, including the cost of future borrowing and immediate impacts on stock and bond valuations. Because of this, managers have incentives to improve or maintain their credit ratings by influencing rating agencies’ perception of credit risk.
Boochun Jung, Naomi Soderstrom, Yanhua Sunny Yang   +2 more
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Smoothing and Earnings Management Policies

2019
This chapter lays the first bases on the concept smoothing. This latter topic is inserted in a broader context that is those of earnings quality management. Moreover, this chapter explains the real earnings management policies such as income smoothing, big bath earnings management, and income minimization and income maximization policies.
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Female Director, CEO Compensation, and Earnings Smoothing

Journal of Accounting and Finance, 2023
This paper is the first one in the literature to examine the effect of female directors on earnings smoothing and the potential channels through which such an effect may occur. When the interaction of female directors and CEO incentive compensation is not included, there is no significant overall effect of female directors on earnings smoothing ...
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