Download or read book Discretionary Reporting of Earnings Components written by Catherine M. Schrand and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides evidence that in quarterly earnings announcements, managers use discretion to strategically report a large, transitory component of prior-period earnings. Managers are more likely to report separately a prior-period transitory gain from the sale of property, plant, and equipment (PPE) than to report a loss. This strategy provides the lowest possible benchmark to evaluate current earnings, thereby allowing the manager to highlight the largest possible change in earnings. This strategic reporting behavior is consistent with a conjecture by managers that investors will forget the transitory nature of the prior-period gain/loss unless it is separately reported in the current earnings announcement. Consistent with this conjecture of an investor processing bias, the stock price reactions suggest that the market does not unravel the strategic reporting at the time earnings are announced. There is some evidence that the market corrects for this bias in the 30 days subsequent to the earnings announcement date.

Download or read book Discretionary Financial Reporting written by Zvi Singer and published by . This book was released on 2007 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 The Impact of Discretionary Segment Reporting Behavior on Investor Beliefs and Stock Prices written by Joseph David Piotroski and published by . This book was released on 1999 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Advances in Quantitative Analysis of Finance and Accounting New Series 2013 Vol 11 written by Cheng F. Lee and published by Center for PBBEFR & Airiti Press. This book was released on 2013-12-01 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Advances in Quantitative Analysis of Finance and Accounting (New Series) is an annual publication designed to disseminate developments in the quantitative analysis of finance and accounting. The publication is a forum for statistical and quantitative analyses of issues in finance and accounting as well as applications of quantitative methods to problems in financial management, financial accounting, and business management. The objective is to promote interaction between academic research in finance and accounting and applied research in the financial community and the accounting profession.

Download or read book Information Content of Earnings Components Reporting Choice and Long Term Contracts written by Konduru Sivaramakrishnan and published by . This book was released on 1989 with total page 207 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Assessing the Impact of a Change in the Level of Manager Discretion on the Informativeness of Earnings written by Alan M. Teixeira and published by . This book was released on 2003 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a high level of interest in the relative merit of principles based standards versus rules based standards. At the heart of the debate appears to be the level of discretion available to managers under the alternative approaches, the consequence of which is perceived to be earnings management.I compare earnings aggregations reported under an accounting standard that provided interpretive slack within the definitions of operating, abnormal and extraordinary activity with contrived data sets that measure earnings components quot;as ifquot; the interpretive slack had been removed. I find that managers do manage components of earnings between aggregations. The results suggest that the identification of unusual earnings components by managers increased the informativeness of reported earnings.There is no evidence to suggest that manager discretion reduced the informativeness of earnings. There is no evidence to suggest that investors were misled by the manipulations.This study makes several contributions. It addresses the basic issue of the extent to which a change in the level of discretion available to managers in measuring and reporting accounting earnings is likely to affect its informativeness. This is a direct test of a framework that provides earnings management opportunities. This study also focuses on classificatory management and, as such, is unencumbered by earnings expectations error.

Download or read book Earnings Management and Its Determinants written by Igor Goncharov and published by Europäische Hochschulschriften / European University Studies / Publications Universitaires Européennes. This book was released on 2005 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: Originally presented as the author's thesis (doctoral)--University of Bremen.

Download or read book The Routledge Companion to Accounting Reporting and Regulation written by Carien van Mourik and published by Routledge. This book was released on 2013-10-01 with total page 568 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial accounting, reporting and regulation is a vast subject area of huge global importance, with interest rising significantly in the light of the ongoing global financial crisis. The authors begin with a broad overview of the subject of accounting, setting the stage for a discussion on the theoretical and practical issues and debates regarding financial reporting, which are expanded on in the second part of the book. This includes how to define the reporting entity, recognition and measurement of the elements of financial statements, fair values in financial reporting and the costs and benefits of disclosure. The third part assesses the interest, need and theories behind the accounting, reporting and regulation industry, while parts four and five look at the institutional, social and economic aspects; with issues such as accounting for environmental management and, accounting regulation and financial reporting in Islamic countries, both issues of ever increasing importance. This authoritative Companion presents a broad overview of the state of these disciplines today, and will provide a comprehensive reference source for students and academics involved in accounting, regulation and reporting.

Download or read book Wiley 11th Hour Guide for 2019 Level II CFA Exam written by Wiley and published by John Wiley & Sons. This book was released on 2019-04-09 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: Final Review Guide for Level II CFA Exam Wiley's 11th Hour Final Review Guide for 2019 Level II CFA Exam compacts all of the readings tested on the 2019 CFA exam into one portable volume. Organized in order, this best-selling guide has helped thousands of candidates from over one-hundred countries pass the CFA exam. Designed to boil it all down to the crucial concepts, formulas and rules, this guide ensures candidates are familiar with the most important testable information. It's difficult to go over multiple books in the last few weeks before the exam, so Wiley's 11th Hour Final Review Guide does the work for you—condensing each reading down to two- to five pages. Enter the exam room with confidence and reinforce your knowledge and preparation! This comprehensive guide complements Wiley's CFA Study Guides sold separately but may be used with any review course. An effective, efficient study guide, this book prepares you to reach the next level in your career. Passing the Level II exam is the only way to sit for the third and final examination associated with the CFA designation, so it is imperative that you leverage the most effective study materials when preparing for your Level II exam. Access targeted, relevant information in a condensed form Efficiently optimize your study time with high-impact notes Achieve clearer understanding via comments and tips from trusted instructors Review the most important concepts and formulas Wiley's 11th Hour Guide for 2019 Level II CFA Exam is an essential resource for CFA candidates preparing to take the Level II examination. "The Eleventh Hour Review book is simply brilliant. Virtually every sentence it contains is testable— it’s an absolute must-have for every Level I candidate." —Ameer, UK "The eleventh hour guide was a great help." —Konrad, South Africa "I used your eleventh hour guide and mock exams for the last bit of my studying and greatly enjoyed your material. Out of all of the exam prep material, I thought [yours] was the best." —Thomas, USA "Thanks to the team for writing the most intelligent Chartered Financial Analyst material I have seen to date. The eleventh hour guide is absolute genius and proving very valuable at this stage of the revision process." —Doug, UK

Download or read book Zero Poverty Society written by Sarah Marchal and published by Oxford University Press. This book was released on 2024-07-11 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: The notion that every person living amidst the relative affluence of the rich world has a right to a minimum income enabling social participation, be it frugally and soberly, holds as a fundamental matter of social justice to most people. But how can we make sure that every person has a decent minimum income allowing for a life with dignity in societies rich enough to afford such a right? How can we ensure that minimum income support is cost-effective and compatible with other goals such as promoting work effort, self-reliance, and upward mobility? How can political support for such schemes be fostered and made robust? Zero Poverty Society assesses the current state of minimum income protection in the rich world, building on original empirical analysis. It also engages with debates on topics as diverse as optimal targeting and means-testing, administrative complexity, non-take-up, behavioural economics, the political economy of minimum income protection, and basic income. Marchal and Marx conclude that more adequate poverty prevention is possible, without the costs having to be prohibitive. However, they are sceptical about 'silver-bullet' solutions such as basic income. Adequate minimum income protection is not a matter of getting one scheme or policy right. It is a matter of getting multiple policy levers right, in the right configuration. Incremental, context-conscious expansion is the way forward if we really care about the most vulnerable.

Download or read book Earnings Quality written by Elisa Menicucci and published by Springer Nature. This book was released on 2019-12-21 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an overview of earnings quality (EQ) in the context of financial reporting and offers suggestions for defining and measuring it. Although EQ has received increasing attention from investors, creditors, regulators, and researchers in different areas, there are various definitions of it and different approaches for its measurement. The book describes the relationship between EQ and earnings management (EM) since they can be considered related challenges, especially in the context of international financial reporting standards (IAS/IFRSs). EM occurs when managers make discretionary accounting choices that are regarded as either an efficient communication of private information to improve the informativeness of a firm’s current and future performance, or a distorting disclosure to mislead the firm’s true performance. The intentional manipulation of earnings by managers, within the limits allowed by the accounting standards, may alter the usefulness of financial reporting and lead to lower quality of earnings. The use of fair value in financial reporting has created a current debate about the impact it might have on EQ. At times, the high subjectivity in estimating fair value can allow opportunities for the exercise of management judgments and intentional bias, which can reduce the quality of financial reporting. Management discretion can result in high EM and hence in a reduction of EQ. Particularly during difficult financial periods, managers engage in EM to mask the negative effects of the turmoil, and in such circumstances accruals and earnings smoothing are attempts to reduce abnormal variations of earnings in such circumstances. This book is a valuable resource for those interested in wider perspectives on EQ and it adds to the research studies on this topic in the context of financial reporting.

Download or read book Quantitative Equity Portfolio Management written by Edward E. Qian and published by CRC Press. This book was released on 2007-05-11 with total page 462 pages. Available in PDF, EPUB and Kindle. Book excerpt: Quantitative equity portfolio management combines theories and advanced techniques from several disciplines, including financial economics, accounting, mathematics, and operational research. While many texts are devoted to these disciplines, few deal with quantitative equity investing in a systematic and mathematical framework that is suitable for

Download or read book Wiley 11th Hour Guide for 2015 Level II CFA Exam written by Wiley and published by John Wiley & Sons. This book was released on 2015-03-04 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: Final Review Guide for Level I CFA Exam Wiley 11th Hour Guide for 2015 Level II CFA Exam compacts all sixty readings tested on the 2015 CFA exam into one portable volume. Organized in order from Reading #1 to #60, this best-selling guide has helped thousands of candidates from over one-hundred countries pass the CFA exam. Designed to boil it all down to the crucial concepts, formulas and rules, this guide ensures candidates are familiar with the most important testable information. It's difficult to go over multiple books in the last few weeks before the exam, so Wiley 11th Hour Guide does the work for you—condensing each reading down to two- to five pages. Enter the exam room with confidence and reinforce your knowledge and preparation! This comprehensive guide complements Wiley's CFA Study Guides sold separately but may be used with any review course. An effective, efficient study guide, this book prepares you to reach the next level in your career. Passing the Level II exam is the only way to sit for the third and final examination associated with the CFA designation, so it is imperative that you leverage the most effective study materials when preparing for your Level II exam. Access targeted, relevant information in a condensed form Efficiently optimize your study time with high-impact notes Achieve clearer understanding via comments and tips from trusted instructors Review the most important concepts and formulas Wiley 11th Hour Guide for 2015 Level II CFA Exam is an essential resource for CFA candidates preparing to take the Level II examination.

Download or read book International Financial Reporting Standards and New Directions in Earnings Management written by Oliveira, Jonas da Silva and published by IGI Global. This book was released on 2019-03-22 with total page 342 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fiscal market is an unpredictable torrent of information that modern organizations strive to understand. Business professionals dedicate themselves to understanding uncertain results around economic performance to improve management, reporting standards, and predict trends in financial statements. International Financial Reporting Standards and New Directions in Earnings Management is an essential reference source that discusses identifying the behavioral patterns of managers and the accounting policies they use in different opportunistic circumstances. Featuring research on topics such as earnings quality, risk reports, and investor protection, this book is ideal for regulatory authorities, accountants, impression managers, auditors, academics, students, and researchers seeking coverage on the theoretical, empirical, and experimental studies that relate to the different themes within earnings management.

Download or read book Advances in Accounting Education written by Bill N. Schwartz and published by Emerald Group Publishing. This book was released on 2008-06-27 with total page 339 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains how faculty members can improve their teaching methods or how accounting units can improve their curricula/programs.

Download or read book International Financial Statement Analysis Workbook written by Thomas R. Robinson and published by John Wiley & Sons. This book was released on 2015-01-30 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: International Financial Statement Analysis provides the most up-to-date detail for the successful assessment of company performance and financial positions. This rich, clear reference covers all aspects from financial reporting mechanics and standards to understanding income and balance sheets. Comprehensive guidance toward effective analysis techniques helps readers make real-world use of the knowledge presented, with this new third edition containing the most current standards and methods for the post-crisis world. Coverage includes the complete statement analysis process, plus information on income tax accounting, employee compensation, and the impact of foreign exchange rates on the statements of multinational corporations. Understand the accounting mechanics behind financial reporting Discover the differences between statements from around the world Learn how each financial statement element affects securities valuation Master analysis for clues into operations and risk characteristics International Financial Statement Analysis provides the latest rules and best practices, with clarity and expert advice. International Financial Statement Analysis Workbook helps busy professionals understand and apply the concepts and methodologies essential to accurate financial analysis. A companion to the IFSA text, this workbook offers learning objectives, chapter summaries, and practice problems that reinforce the practitioner-oriented material to give readers the confidence they need before applying these concepts to real cases. Readers will test their understanding of the standards and mechanics of financial reporting, and make use of the tools and techniques described in the text. This informative study guide is designed to facilitate information retention, helping readers build a strong foundation in financial statement analysis, with practical applications across borders. The volatile global economy makes accurate international financial statement analysis a valuable skill, where insufficient mastery makes precise valuation impossible. International Financial Statement Analysis provides the most up-to-date knowledge, and this workbook offers readers a chance to practice applying that knowledge with carefully constructed problems. Work topic-specific practice problems to facilitate intuitive understanding Review each topic quickly using clear chapter summaries Understand each chapter's objective to avoid missing key information Practice important methods and techniques before applying them in the real world It's impossible to tell how well a subject is mastered without applying the relevant concepts to a real-life situation. Valuation depends upon an accurate financial analysis, and practitioners need a solid grasp of the standards, formats, and documentation they may encounter on the international level. Practice makes perfect, and International Financial Statement Analysis Workbook provides plenty of practice and essential tools for understanding.