Results 161 to 170 of about 2,761 (201)

Earnings' Quality and Smoothing

SSRN Electronic Journal, 2005
We study a model of financial reporting and show that a credible equilibrium may exist where, compared to earnings reported without discretion, better informed managers report smoother earnings by smoothing the transitory component when news is good and report earnings that accentuate the intertemporal differences when news is bad.
Michael Kirschenheiter, Nahum D. Melumad
openaire   +1 more source

Firms’ earnings smoothing, corporate social responsibility, and valuation

Journal of Corporate Finance, 2015
Earnings smoothing via accounting discretion could improve or garble actual earnings information. Although managers prefer a less volatile earnings path and perceive lower risk for earnings smoothness, prior studies show that there is no discernible ...
Joseph H Zhang
exaly   +2 more sources

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
openaire   +1 more source

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
openaire   +1 more source

The Effect of Discretionary Earnings Smoothing and Asymmetric Timeliness of Loss Recognition on Nonlinear Relationship between Earnings Smoothing and Information Asymmetry

Korean Association Of Computers And Accounting, 2022
Previous studies have reported conflicting results on the relationship between earnings smoothing and information asymmetry depending on the positive and negative roles of earnings smoothing. For these contradictory results, Jayaraman(2008) confirmed that there is a U-shaped non-linear relationship between earnings smoothing and information asymmetry ...
Jong-Gyu Kim, Myoung-Jong Kim
openaire   +1 more source

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.
openaire   +1 more source

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.
openaire   +1 more source

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
openaire   +1 more source

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
openaire   +1 more source

Bank earnings smoothing, audit quality and procyclicality in Africa [PDF]

Review of Accounting and Finance, 2017
Purpose The purpose of this paper is to empirically examine whether the way African banks use loan loss provisions (LLP) to smooth earnings is influenced by capital market motivations and the type of auditor, after controlling for non-discretionary ...
Peterson K Ozili
exaly   +2 more sources