Download Earnings Quality by Jennifer Francis, Per Olsson, Katherine Schipper PDF

By Jennifer Francis, Per Olsson, Katherine Schipper

Profits caliber studies present examine actions round gains caliber. It offers an summary of different definitions and measures of gains caliber and a dialogue of analysis layout offerings encountered in profits caliber examine with a spotlight on capital markets. gains caliber examines how the precision of economic details impacts the review and use of that details by way of capital industry individuals. The authors' major concentration is at the precision of gains, that is seen as a precis indicator of the general caliber of economic reporting. The authors assessment: ·earnings caliber and position profits caliber within the context of total capital marketplace info caliber ·the determinants of gains caliber, generally separated into intrinsic determinants that derive from company versions and working environments and reporting determinants that derive from the management's implementation judgements in monetary reporting technique ·twelve measures of profits caliber offering examples of study utilizing those measures, and supply perspectives on which measures are greatest in a given context. ·research layout concerns and learn findings touching on the capital industry outcomes of gains caliber, specifically its organization with anticipated returns (or the price of capital) and unforeseen (abnormal) returns gains caliber can be of curiosity to many members within the monetary reporting strategy together with usual setters, preparers, auditors, regulators, analysts, and fiscal press commentators. it may be of equivalent curiosity to accounting educators and researchers.

Show description

Read Online or Download Earnings Quality PDF

Best accounting books

Advanced Accounting , Tenth Edition

Supply your scholars the main authoritative, accomplished assurance of complex accounting themes to be had with Fischer/Taylor/Cheng's complex ACCOUNTING, 10th version. totally revised to include the most recent FASB statements and their impression on consolidations, complex ACCOUNTING, 10th variation, combines sound theoretical foundations with a hands-on, learn-by-example procedure that has validated this article because the well known chief in latest complex accounting study rooms.

Taxation Under the Early Tudors 1485-1547

According to unique learn, this publication marks an incredible develop in our knowing not just of the financial assets to be had to the English crown but in addition of the wider political tradition of early Tudor England. An unique examine of taxation lower than the early Tudors. Explains the importance of the parliamentary lay taxation levied on contributors at present.

Practitioner's guide to GAAS 2016 : covering all SASs, SSAEs, SSARSs, PCAOB auditing standards, and interpretations

Plain-English interpretations and purposes of the newest GAAS ''Wiley Practitioner's consultant to GAAS 2016'' offers complete assistance towards the newest guidance and functions of as a rule permitted Auditing criteria. With distinctive assurance of the most recent releases, this useful reference explains every one usual in transparent, available language and highlights the ways that the factors are comparable.

Additional info for Earnings Quality

Sample text

5 Moreover, both 5 Under this view, the net earnings quality effect of management’s reporting decisions is expected to be positive on average, indicating that the performance subcomponent dominates the opportunism subcomponent. Empirical support for this view is provided by Subramanyam (1996) and Xie (2001) who show that in large samples, total accruals and discretionary accruals improve earnings as a signal of performance, as measured by the contemporaneous returns-earnings relation. 26 Determinants of Earnings Quality Guay et al.

They characterize the seven earnings attributes as either “accounting-based” or “market-based” depending on the underlying assumptions about the function of financial reporting, and they note that these assumptions will, in turn, influence the way the attributes are measured. The accounting-based earnings attributes are accruals quality, persistence, predictability, and smoothness. These attributes take cash or earnings (or other measures that can be derived from these, such as accruals) as the reference construct, and are estimated using accounting data (not market data).

Note, the differences in reference constructs are based on implicit or explict assumptions about the intended function of earnings. Specifically, accounting-based earnings quality measures assume that the function of earnings is to allocate cash flows to reporting periods via accruals, while market-based earnings quality measures assume that the function of earnings is to reflect economic income as represented by stock returns. The remainder of this section describes several measures of earnings quality that have been used in accounting research.

Download PDF sample

Rated 4.64 of 5 – based on 29 votes