Download or read book Discontinuities of Earnings and Earnings Change Distributions After J SOX Implementation written by Masahiro Enomoto and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Discontinuity of Earnings and Earnings Changes Distribution After J SOX Implementation written by Tomoyasu Yamaguchi and published by . This book was released on 2015 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Discontinuity in Earnings Distributions written by Wei Li and published by . This book was released on 2015 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a model of financial reporting in which investors infer both pre-managed earnings and the precision of earnings from reported earnings. Over-reporting earnings has two opposing pricing effects: investors infer higher pre-managed earnings from an inflated positive earnings surprise (i.e., positive effect); however, investors also infer a lower earnings precision, leading to a lower pricing weight placed on the higher surprise (i.e., negative effect). For firms with strongly positively autocorrelated earnings, the trade-off between the two opposing effects creates a pooled report right above the prior mean of the earnings distribution and a no-reporting quot;holequot; right below the prior mean in equilibrium (i.e., an earnings discontinuity consistent with empirical findings). The model also predicts: (1) no earnings discontinuity exists for firms with negatively or weakly positively autocorrelated earnings, and (2) the earnings discontinuity is more pronounced for firms with more positively autocorrelated earnings. The empirical evidence supports the two predictions.
Download or read book Earnings Management Alternative Explanations for Observed Discontinuities in the Frequency Distribution of Earnings Earnings Changes and Analyst Forecast Errors written by Cindy Durtschi and published by . This book was released on 2005 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: The discontinuities at zero in the frequency distributions of reported net income (deflated by beginning-of-period market capitalization), deflated change in net income, I/B/E/S quot;actualquot; earnings, and analysts' forecast errors are the most widely cited evidence of earnings management. We provide evidence consistent with alternative explanations for each of these discontinuities. We show that firms reporting small losses are priced significantly differently from firms that report small profits. An effect of this difference in pricing is that earnings to the left of zero are deflated by significantly different denominators than earnings to the right of zero inducing a discontinuity in the distributions of deflated net income and deflated changes in net income at zero. We also show that sample selection criteria may contribute to the discontinuity in these distributions as well as the discontinuity in I/B/E/S actual earnings. Finally, the presumption in the literature which focuses on the discontinuity at zero in the distribution of analysts' forecasts errors is that earnings are managed to meet or beat analysts' forecasts. We provide an alternative explanation: the discontinuity is caused by the fact that analysts' forecast errors tend to be much greater when the forecasts are optimistic than when they are pessimistic. This tendency leads to more small positive forecasts errors (pessimistic forecasts) than small negative forecast errors (optimistic forecasts).
Download or read book An Alternative Interpretation of the Discontinuity in Earnings Distributions written by William H. Beaver and published by . This book was released on 2007 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show that the asymmetric effects of income taxes and special items for profit and loss firms contribute substantially to a discontinuity at zero in the distribution of earnings. Income taxes draw profit observations towards zero while negative special items pull loss observations away from zero. These earnings components are thus expected to contribute to a discontinuity even in the absence of discretion. We show our results are not an artifact of deflation, and that other common components of earnings do not have similar effects on the earnings distribution around zero.
Download or read book Mixture and Continuous Discontinuity Hypotheses written by Andrew Yim and published by . This book was released on 2014 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: A parsimonious model is developed to understand two perplexing, salient features of the distributions of earnings, earnings change, and earnings surprise. The model provides guidance for empirical work to uncover the unmanaged earnings important to firm valuation and public scrutiny, yet unobserved by outside parties. Simulation results based on the model show that the puzzling volcano shape of the distributions can arise from the mixture of a spiky distribution of managed earnings with a bell-shaped distribution of unmanaged earnings. The spiky distribution is due to cookie-jar earnings management that compresses unmanaged earnings from both sides toward an earnings benchmark, leading to a concentration of density around there. The mixture is due to the auditor's adjustment decision, which seems stochastic from the public's or client firm's perspective. Additional simulation results suggest that the widely documented discontinuity in the distributions can be partly due to a steep increase in density appearing like a discontinuity when a continuous distribution is plotted in terms of frequency counts in histogram bins. The main analytical results are a general characterization of the optimal earnings management strategy and the derivation of closed-form solutions for particular functional form assumptions. Potential applications include structurally estimating the model for policy analysis to assess the impact on earnings manipulation.
Download or read book Earnings Management written by Joshua Ronen and published by Springer Science & Business Media. This book was released on 2008-08-06 with total page 587 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?
Download or read book Securities Market Issues for the 21st Century written by Merritt B. Fox and published by . This book was released on 2018 with total page 476 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Managing Ocean Environments in a Changing Climate written by Kevin J. Noone and published by Newnes. This book was released on 2013-06-29 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: Managing Ocean Environments in a Changing Climate summarizes the current state of several threats to the global oceans. What distinguishes this book most from previous works is that this book begins with a holistic, global-scale focus for the first several chapters and then provides an example of how this approach can be applied on a regional scale, for the Pacific region. Previous works usually have compiled local studies, which are essentially impossible to properly integrate to the global scale. The editors have engaged leading scientists in a number of areas, such as fisheries and marine ecosystems, ocean chemistry, marine biogeochemical cycling, oceans and climate change, and economics, to examine the threats to the oceans both individually and collectively, provide gross estimates of the economic and societal impacts of these threats, and deliver high-level recommendations. Nominated for a Katerva Award in 2012 in the Economy category State of the science reviews by known marine experts provide a concise, readable presentation written at a level for managers and students Links environmental and economic aspects of ocean threats and provides an economic analysis of action versus inaction Provides recommendations for stakeholders to help stimulate the development of policies that would help move toward sustainable use of marine resources and services
Download or read book Entrepreneurship written by Marc J. Dollinger and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: For junior/senior/graduate-level courses in Entrepreneurship, New Venture Creation, and Small Business Strategy. Based on the premise that entrepreneurship can be studied systematically, this text offers a comprehensive presentation of the best current theory and practice. It takes a resource-based point-of-view, showing how to acquire and use resources and assets for competitive advantage. FOCUS ON THE NEW ECONOMY * NEW-Use of the Internet-Integrated throughout with special treatment in Ch. 6. * Demonstrates to students how the new economy still follows many of the rigorous rules of economics, and gives them examples of business-to-business and business-to-customer firms so that they can build better business models. * NEW-2 added chapters on e-entrepreneurship-Covers value pricing; market segmentation; lock-in; protection of intellectual property; and network externalities. * Examines the new economy and the types of resources, capabilities, and strategies that are needed for success in the Internet world. * Resource-based theory-Introduced in Ch. 2 and revisited in each subsequent chapter to help tie concepts together. * Presents an overarching framework, and helps students focu
Download or read book Technology and Global Change written by Arnulf Grübler and published by Cambridge University Press. This book was released on 2003-10-16 with total page 468 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first book to comprehensibly describe how technology has shaped society and the environment over the last 200 years. It will be useful for researchers, as a textbook for graduate students, for people engaged in long-term policy planning in industry and government, for environmental activists, and for the wider public interested in history, technology, or environmental issues.
Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Information Trading and Product Market Interactions written by Heather Elise Tookes and published by . This book was released on 2003 with total page 592 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The New Leader s 100 Day Action Plan written by George B. Bradt and published by John Wiley & Sons. This book was released on 2009-03-16 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: The New Leader's 100-Day Action Plan, and the included downloadable forms, has proven itself to be a valuable resource for new leaders in any organization. This revision includes 40% new material and updates -- including new and updated downloadable forms -- with new chapters on: * A new chapter on POSITIONING yourself for a leadership role * A new chapter on what to do AFTER THE FIRST 100 DAYS * A new chapter on getting PROMOTED FROM WITHIN and what to do then
Download or read book Winning the Oil Endgame written by Amory B. Lovins and published by Earthscan. This book was released on 2004 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: Enough about the oil problem. Here?s the solution.Over a few decades, starting now, a vibrant US economy (then others) can completely phase out oil. This will save a net $70 billion a year, revitalize key industries and rural America, create a million jobs, and enhance security.Here?s the roadmap ? independent, peer-reviewed, co-sponsored by the Pentagon ? for the transition beyond oil, led by business and profit.
Download or read book Financial Management from an Emerging Market Perspective written by Soner Gokten and published by BoD – Books on Demand. This book was released on 2018-01-17 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the main reasons to name this book as Financial Management from an Emerging Market Perspective is to show the main differences of financial theory and practice in emerging markets other than the developed ones. Our many years of learning, teaching, and consulting experience have taught us that the theory of finance differs in developed and emerging markets. It is a well-known fact that emerging markets do not always share the same financial management problems with the developed ones. This book intends to show these differences, which could be traced to several characteristics unique to emerging markets, and these unique characteristics could generate a different view of finance theory in a different manner. As a consequence, different financial decisions, arrangements, institutions, and practices may evolve in emerging markets over time. The purpose of this book is to provide practitioners and academicians with a working knowledge of the different financial management applications and their use in an emerging market setting. Six main topics regarding the financial management applications in emerging markets are covered, and the context of these topics are "Capital Structure," "Market Efficiency and Market Models," "Merger and Acquisitions and Corporate Governance," "Working Capital Management," "Financial Economics and Digital Currency," and "Real Estate and Health Finance."
Download or read book The Performance Economy written by W. Stahel and published by Springer. This book was released on 2010-02-24 with total page 373 pages. Available in PDF, EPUB and Kindle. Book excerpt: This updated and revised edition outlines strategies and models for how to use technology and knowledge to improve performance, create jobs and increase income. It shows what skills will be required to produce, sell and manage performance over time, and how manual jobs can contribute to reduce the consumption of non-renewable resources.
