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Custovic, Haris, and Måns Linderoth. "Ägarstrukturens påverkan på earnings quality." Thesis, Linköpings universitet, Företagsekonomi, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-139995.
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Introduction: Prior research, mainly based in USA and Asia, has shown a relationship between ownership structure and earnings quality. Low earnings quality might result in inefficient resource allocation, lower economic growth and unintended wealth transfers. Following these issues, and due to the fact that the Swedish institutional setting differs from other countries, there is a need to explain the relationship in a Swedish context. Purpose: The purpose of this study is to explain how different ownership structures affect earnings quality. Method: This study is based on a deductive approach where the hypotheses have been deducted from agency theory, alignment effect, entrenchment effect and active monitoring hypothesis. The quantitative data consists of secondary data, namely annual reports. The study has been conducted with a cross-sectional design. Conclusion: The results show a positive relationship between foreign ownership and earnings quality. The result can be explained with agency theory’s type I-problem. Other ownership structures show no significant relationship.Introduktion: Tidigare forskning, främst i USA och Asien, har hittat samband mellan företags ägarstruktur och earnings quality. Låg earnings quality kan resultera i ineffektiv resursallokering, lägre samhällsekonomisk tillväxt samt omotiverade förmögenhetsöverföringar. Till följd av dessa problem, samt att Sveriges institutionella miljö skiljer sig åt från andra länder, finns behovet att förklara sambandet i en svensk kontext. Syfte: Studiens syfte är att förklara hur olika ägarstrukturer påverkar earnings quality. Metod: Studien utgår från en deduktiv ansats där hypoteser deducerats utifrån agentteori, alignment effect, entrenchment effect, samt active monitoring hypothesis. Kvantitativ data består av sekundärdata i form av årsredovisningar. Studien har genomförts med en tvärsnittsdesign. Slutsats: Studiens resultat visar att företag med högre andel utländskt ägande tenderar att redovisa högre earnings quality. Resultatet kan förklaras av agentteorins typ I-problem. Övriga ägarstrukturer uppvisar inga signifikanta samband.
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Lawal, Tolulola Olusegun. "Earnings quality and bank equity." Thesis, Imperial College London, 2012. http://hdl.handle.net/10044/1/9303.
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This doctoral thesis reports the results of three studies that address the implications of two bank characteristics - bank efficiency and bank earnings quality - for bank dividend policy and specified capital market outcomes. Chapter 1 introduces the thesis. The first study links the market reactions to dividend change announcements by banks to changes in bank efficiency score, our new measure of bank overinvestment problem, derived from a frontier analysis of bank input-output combinations. We find that improvement in bank overinvestment problem, defined as changes in bank efficiency, is significantly and positively associated with market reactions following dividend increases. However, consistent with the moderating role of bank regulation, we find no support for the role of changes in bank efficiency in market reactions to dividend decreases. The second study establishes a link between bank earnings quality and bank cost of equity capital. Using various earnings quality measures, the study finds that banks with better earnings quality experience lower cost of equity capital. Consistent with this primary finding, our results also support the idea that banks with higher earnings quality enjoy higher market valuation and higher price-earnings multiples compared to banks with lower earnings quality. Overall, our results suggest that markets can differentiate between “good” and “bad” earnings and seem to compensate banks with better earnings quality. The third study contributes to the literature by first developing a country-specific index of bank earnings quality. We further hypothesise that banks in countries characterised by high earnings quality pay more dividends than banks in countries with lower earnings quality. Our data give support to this hypothesis. Finally, using modified partial adjustment models that incorporate our index of earnings quality, we find that the dividend-earnings relation is stronger for banks operating in countries with high earnings quality than for banks operating in countries with low earnings quality.
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Setterberg, Hanna. "The pricing of earnings : essays on the post-earnings announcement drift and earnings quality risk." Doctoral thesis, Handelshögskolan i Stockholm, Institutionen för Redovisning och finansiering, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:hhs:diva-1592.
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This dissertation is concerned with the relationship between accounting earnings and stock prices. It consists of three empirical papers, all using a sample of firms listed on the Stockholm Stock Exchange (1990-2008). The first paper documents the existence of a drift in stock prices subsequent to quarterly earnings announcements. Two interesting empirical observations are that the drift is only significant for longer holding periods and that the drift on the short position, i.e. after bad earnings news, is negligible. The lack of downward drift on the short position is interpreted as an indication of the post-earnings announcement drift, at least partly, being explained by investors demanding a compensation for a risk factor that is omitted in the test design. The second paper illustrates under what conditions information risk in the earnings signal might explain a low announcement reaction and a price drift in the post-announcement period. It is hypothesized that two earnings signals – based either on GAAP earnings or core earnings – have different levels of information uncertainty with respect to how they depict the value creation of the firm. In the empirical sections, it is concluded that the low immediate announcement reaction and high post-announcement drift for the GAAP earnings signal is due to this signal being perceived by investors as containing more uncertainty than the core earnings signal. It is argued that this uncertainty might be due to GAAP earnings encompassing items that prior research has shown more likely to be manipulated and/or to contain estimation error. The positive association between information risk and expected return is further investigated in the third paper, where information risk is measured by earnings quality metrics. Using a new approach to estimate the implied cost of capital, it is found that Swedish investors demand a higher expected return for firms with poor earnings quality, i.e. firms associated with higher information risk.Diss. Stockholm : Handelshögskolan i Stockholm, 2011
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Ahrens, Bianca. "Capital market implications of earnings quality." Lohmar Köln Eul, 2009. http://d-nb.info/1003096085/04.
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Chen, Zhimin. "CEO Cash Compensation and Earnings Quality." Thesis, The University of Arizona, 2010. http://hdl.handle.net/10150/146591.
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I examine the uses of accounting performance measures by testing the association between CEO cash pay sensitivity and earnings quality. I assume that the valuation and evaluation uses of accounting information are linked through the information risk. I expect to find that the sensitivities of CEO cash compensation to accruals and cash flows are associated with accrual quality and cash flow persistence. I find that there is a significant positive relation between accrual quality and CEO cash pay sensitivity to earnings. I find no association between the asymmetric pay-sensitivity to stock returns and earnings quality, and no relation between persistence to pay sensitivity to earnings. This research extends the accounting literature on earnings quality. This research also leads to the discussion of one of the problems of CEO compensation contracting since there appears to be no evidence showing that CEO receives incentives for reporting high quality earnings information and penalties for reporting low quality earnings information.
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Racca, Joshua C. "Stable Book-Tax Differences, Prior Earnings and Earnings Persistence." Thesis, University of North Texas, 2011. https://digital.library.unt.edu/ark:/67531/metadc103378/.
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This study resolves divergent prior findings relating book-tax differences to future earnings, determines whether prior literature has missed relationships between different types of book-tax differences and pre-tax and/or after-tax income, and investigates prior earnings as a factor contributing to the observed relationships. As past research has found that some firms have large book-tax differences over several years, this study separates these firms with large stable book-tax differences from others with large book-tax differences (non-stable) when investigating the link between large book-tax differences and future earnings. Finally, this study investigates whether the relationship between book-tax differences and future earnings reflects information about prior earnings and finds that prior earnings growth explains much of the lower persistence found for firms with large book-tax differences.
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Klaxman, Emil. "Earnings quality och blankningar : En studie om intresset av blankningspositioner i bolag med avseende på earnings quality." Thesis, Högskolan Dalarna, Företagsekonomi, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:du-30763.
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Syfte: Syftet med den här uppsatsen är att undersöka om blankade bolag har lägre grad av earnings quality än icke-blankade bolag. Metod: Kvantitativ metod, t-test för två populationer som antar olika varianser. Resultat och slutsats: Resultatet i den här studien visar att blankade bolag inte har lägre grad av earnings quality än icke-blankade bolag. Resultatet visar även att icke-blankade bolag har lägre grad av earnings quality än blankade bolag. Därför kan jag inte uttala mig om huruvida blankare använder earnings quality vid tagandet av blankningspositionerPurpose: The purpose of this essay is to examine if shorted companies have poorer earnings quality than non-shorted companies Method: Quantitative analysis, t-test for two-sample assuming unequal variances Result and conclusion: The results of this study show that shorted companies do not have poorer earnings quality than non-shorted companies. The results also indicate that non-shorted companies have poorer earnings quality than shorted companies. Thus, I cannot comment on whether short sellers are using information about earnings quality when taking short positions
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Chen, Ching-peng. "The implications of earnings quality for market reactions to annual earnings announcements." Thesis, University of British Columbia, 1989. http://hdl.handle.net/2429/42009.
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This paper assesses the impact of earnings quality on market responses to annual earnings
announcements. Earnings quality is measured by the ratio of earnings to funds from
operations. The difference in the association between forecast errors and excess returns
across the high/low quality earnings subsamples is found to be statistically significant;
there is a greater market response to earnings announcements of high-quality firms than
to low-quality firms. Hence, earnings quality as measured by the ratio of earnings to funds
from operations, is found to have pricing implications. The results are robust across two
regression models: OLS on returns ordered in announcement time and SUR/GLS on
returns ordered in calendar time.Business, Sauder School of
Graduate
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McDougal, Karen H. "International Diversification and Earnings Quality: the Impact of Audit Quality." Diss., Temple University Libraries, 2011. http://cdm16002.contentdm.oclc.org/cdm/ref/collection/p245801coll10/id/123275.
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Business Administration/AccountingPh.D.
The literature on International Diversification suggests that investors and analysts value foreign earnings differently than domestic earnings. Prior studies also show an overall "valuation discount" for firms with foreign operations. To my knowledge, no study has empirically tested and found there to be differences in earnings quality for these firms. This study investigates differences in the quality of earnings for U.S. firms with foreign operations using a direct measure (discretionary accruals) and an indirect measure (investor perception of earnings). I also consider the impact of audit quality on each measure of earnings quality. In the first part of my dissertation I find firms with foreign operations report lower discretionary accruals than firms with only domestic operations. This indicates that auditors, similar to investors and analysts, report more conservatively for firms with foreign operations. My results show that audit quality further reduces the absolute value of reported accruals, and I find a higher level of reported "income decreasing" accruals for these firms. In the second section of my dissertation I consider the impact of audit quality on investor perception of earnings. Similar to earlier papers I find that foreign earnings changes are more highly associated with changes in firm value than domestic earnings changes, and this larger earnings response is attributed to negative changes in foreign earnings. I also find that audit quality improves investor perception of foreign earnings for firms with foreign operations. While there are ample studies demonstrating that firms with foreign operations are valued differently than firms with purely domestic operations, my study is the first to provide empirical evidence about how audit quality impacts financial reporting, the quality of earnings, and investor perception of earnings for firms with foreign operations.
Temple University--Theses
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Chan, Ling-Ching. "Accounting conservatism, earnings quality, and firm valuation." Thesis, University of Manchester, 2005. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.629937.
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This thesis explores the relation between conservatism and earnings quality, and its economic consequences. The principle of conservatism has played an important role in dealing with uncertainties in the process of financial reporting. In the past ten years, substantial market-based accounting research has been devoted to the study of conservatism but few studies have attempted to examine how the nature of conservatism affects earnings quality from an information perspective and whether conservative accounting provides information that is useful in helping investors make investment decisions. The present work provides UK evidence on the relation between accounting conservatism and several earnings attributes and on how this relation affects investors' required rates of return. It comprises three major pieces of empirical work. First, I investigate the effect of earnings components--cash flow from operations, operating and non-operating accruals--on earnings conservatism using three different regression models. These are the augmented forward and reverse return--earnings regressions, and the earnings persistence regressions. The results show that non-operating accruals has the most significant effect on estimates of conservatism in all three models. Second, I examine the association between ex-ante/ex-post conservatism and several earnings characteristics: the value-relevance, informativeness, persistence, and predictability of reported earnings. These earnings attributes are important determinants of earnings quality from an information perspective and greater values of these earnings attributes imply that reported earnings are more useful for decision-making purposes. The results show that ex-ante (balance sheet) conservatism has a positive relation with earnings quality. However, there is no direct relation between ex-post (earnings) conservatism and earnings quality, and extreme ex-post conservatism may undermine the quality of reported earnings. Third, I examine how the relation between conservatism and earnings quality affects investors' required rates of return. I find that higher ex-ante conservative earnings are related to lower costs of equity capital and that there is no significant relation between ex-post conservatism and investors' required rates of returs. Based on the findings in this thesis, I conclude that accounting conservatism is an essential concept in financial reporting and that investors understand the nature of conservatism and price firm value rationally.
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Cardoso, João Pedro Dias. "Earnings quality and investment efficiency : european evidence." Master's thesis, Instituto Superior de Economia e Gestão, 2019. http://hdl.handle.net/10400.5/19926.
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Mestrado em Contabilidade, Fiscalidade e Finanças EmpresariaisO objetivo deste estudo é investigar o impacto da qualidade dos resultados na eficiência de investimento em empresas Europeias, cotadas e não cotadas. A amostra, retirada da base de dados Amadeus, é composta por 6921 empresas de 19 países. A eficiência do investimento é baseada no modelo de oportunidades crescentes de Biddle et al. (2009), expandido por literatura subsequente, e a qualidade dos resultados é medida usando o modelo de Dechow e Dichev modificado por McNichols (2002). Os resultados obtidos são significativos, e mostram que uma maior qualidade dos resultados está relacionada com uma maior eficiência de investimento, medida pelos desvios do nível ótimo. Estes resultados verificam-se quer considerando o valor absoluto destes desvios, quer considerando os cenários de subinvestimento (desvios negativos) ou sobreinvestimento (desvios positivos). O efeito do nível de caixa e endividamento foi igualmente considerado nesta relação, observando-se uma influência significativa.
The purpose of this study is to investigate the impact of earnings quality on investment efficiency in European listed and unlisted companies. The sample, collected from Amadeus database, is composed by 6921 companies from 19 countries. The investment efficiency measure is based on Biddle et al. (2009) growth opportunities model and subsequent research, and earnings quality is measured using Dechow and Dichev (2002) model modified by McNichols (2002). Results show that higher earnings quality is associated with higher investment efficiency, measured by the deviations from the optimal investment level. These results hold for both underinvestment (negative deviations) and overinvestment (positive deviations) scenarios. Results also suggest that cash and leverage levels play an important role on the relation between earnings quality and investment efficiency.
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Almeida, Rodrigo da Silva. "Earnings quality : Eikon measure vs academic measure." Master's thesis, Instituto Superior de Economia e Gestão, 2020. http://hdl.handle.net/10400.5/20995.
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Mestrado em Contabilidade, Fiscalidade e Finanças EmpresariaisO objetivo principal deste estudo é determinar se o modelo de qualidade dos lucros criado pela Thomson Reuters Eikon está de alguma forma correlacionado com um dos modelos académicos mais usados na literatura de EQ. Além disso, este estudo procura aprofundar o conhecimento sobre os modelos quantitativos elaborados por bases de dados eletrónicas, mais especificamente o modelo de EQ da Eikon. Para a primeira parte da análise foram realizados testes de correlação, de Spearman e Pearson, realizados entre os dois modelos. De seguida, foi construída uma regressão usando o trabalho de Bens et al. (2019), adaptada ao objetivo deste estudo. Os resultados obtidos na análise de correlação sugerem que o modelo Eikon está positivamente correlacionado com o modelo académico, embora seja um valor fraco para ambos os testes. Porém, em nenhuma das análises foi possível identificar um padrão ou motivo evidente para os resultados da correlação positiva por país, setor e ano. Além disso, determinou-se que a relação entre os dois modelos é melhor explicada quando se considera o tamanho da empresa, o nível de endividamento, o número de analistas que acompanham a empresa e o índice de rendibilidade dos ativos.
The main aim of this study is to determine if the earnings quality model provided in Thomson Reuters Eikon is correlated with one of the most used academic measures for EQ. Moreover, this study tries to deepen the knowledge on the quantitative models created by electronic databases, namely the Eikon EQ score. For the first part of the analysis Spearman and Pearson correlation tests, were performed between the two models. After that, a regression was constructed using the work by Bens et al. (2019), adapted to the purpose of this study. The results obtained through the correlation analysis suggest that Eikon model is positively correlated with the academic model, albeit it being a small value for both tests. However, it was not possible to identify a pattern or evident reason for the positive correlation results by country, industry and year present in the sample. Additionally, it was determined that the relation between the both models is better explained when taking company size, level of debt, number of analysts following the firm and return on assets ratio.
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Sukartha, Putu Dyan Yaniartha. "Indonesian state-owned enterprises and earnings quality." Thesis, Queensland University of Technology, 2020. https://eprints.qut.edu.au/203192/1/Putu%20Dyan%20Yaniartha_Sukartha_Thesis.pdf.
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This thesis extends the earnings quality literature through its focus on two Indonesian phenomena – a two-stage approach to International Financial Reporting Standards (IFRS) convergence and partial privatisation of State-owned enterprises (SOEs). Using extensive panel data from the Indonesian stock exchange the study finds that accrual quality of listed SOEs has significantly improved under IFRS, but not earnings persistence or earnings smoothness. Employing the latent growth curve model, the study finds that the second stage of convergence had a more pronounced impact on accrual quality. Comparatively, the rate of improvement in accrual quality was higher for SOEs than non-SOE listed companies.
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Kamel, Hany Mohamed Moustafa. "Earnings quality evaluation with special reference to the earnings management of Egyptian IPOs." Thesis, Cardiff University, 2006. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.435260.
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Hawborn, Dahlstedt Simon. "Political Risk & Earnings Quality : An analysis of political effects on earnings management." Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-387507.
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The high level of political risk might enhance the information asymmetry between managers and stakeholders, therefore leading to increased opportunity for earnings management activities, which depress the usefulness of financial information. On the other hand, times of high political uncertainty possibly increase the demand for information among stakeholders, consequently leading to enhanced scrutiny and fewer earnings management activities. By examine 625 firms listed in the United States between 20022016, I make use of a firm-level measurement of political risk to identify the possible impact on earnings quality. I identify that political risk exposure measured on a firm-level is negatively associated with earnings management. Therefore I can conclude that firm-level political risk increases earnings quality. I further show how firm-level political risk better predicts earnings management activities than an aggregated measurement of political risk. Finally, I provide evidence that suggests that accrual-based earnings management is affected by the past level of political risk exposure. Real earnings management activities show no such indications.
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Chen, Zhihong. "Two essays on corporate governance and earnings quality /." View abstract or full-text, 2005. http://library.ust.hk/cgi/db/thesis.pl?ACCT%202005%20CHEN.
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Osma, Beatriz GarciÌa. "Earnings quality, auditor monitoring and corporate governance mechanisms." Thesis, Lancaster University, 2006. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.441841.
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Pham, Trung. "The Effect of Internal Governance on Earnings Quality." Kent State University / OhioLINK, 2020. http://rave.ohiolink.edu/etdc/view?acc_num=kent1593518698093455.
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Wang, Dechun. "Founding family ownership and accounting earnings of quality /." free to MU campus, to others for purchase, 2004. http://wwwlib.umi.com/cr/mo/fullcit?p3144465.
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Cong, Lingmei. "Foreign primary listings, earnings quality and corporate governance." Thesis, Curtin University, 2009. http://hdl.handle.net/20.500.11937/1206.
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Establishing the firm's primary listing on a foreign capital market rather than a domestic one is a phenomenon virtually unique to People's Republic of China (PRC) firms. Whilst raising countless important questions, PRC foreign primary listing phenomenon has received very limited empirical attention including investigations into the impact of and motivation for a PRC firm to establish primary listing abroad. The main objectives of this study are twofold. Firstly, the study determines if the earnings quality of PRC domiciled firms with a foreign primary listing vary from PRC domiciled counterparts with a domestic primary listing. The analysis particularly focuses on the impact of place-of-listing, place-of-incorporation, and share type. Secondly, using bonding theory empirical tests are performed to determine if the level of corporate governance bonding affects the earnings quality of PRC foreign primary listed firms.Casting earnings quality within a holistic general user perspective, the analysis is performed in two main stages using data derived from the 2006 annual reports. Stage One analysis covers 483 PRC domiciled firms with primary listings in the PRC, Hong Kong or Singapore. Findings in Stage One indicate a significant variation in earnings quality between PRC domiciled firms with a foreign primary listing from PRC domiciled counterparts with a domestic primary listing. Significant variations in earnings quality appear to be driven by the place-of-listing and share type but not the place-of-incorporation. Stage Two analysis focuses specifically on 275 PRC domiciled firms with a foreign primary listing. Results from Stage Two overall do not support the association between corporate governance bonding and earnings quality of PRC foreign primary listed firms.This thesis provides a number of important contributions with implications for different stakeholders. For example, findings assist global investors in developing better investment strategies related to PRC firms that could reduce potential negative wealth transfers. Results also suggest PRC regulators may need to implement stronger policies to ensure closer streamlining of corporate governance practice of PRC foreign primary listed firms.
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Wong, Leon Keat Leong Accounting Australian School of Business UNSW. "The pricing or mispricing of earnings quality in Australia." Awarded By:University of New South Wales. Accounting, 2009. http://handle.unsw.edu.au/1959.4/43569.
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This thesis investigates the pricing (or mispricing) of earnings quality in Australia. It investigates whether information in earnings quality is used by investors in valuing firms, evidenced by an association between earnings quality and the cost of equity. In the alternate form, the question may be posed as whether earnings quality is mispriced by investors such that there may be opportunities to earn abnormal profits from trading strategies based on earnings quality. Ten earnings quality constructs are studied: total accruals, unexpected accruals, cash-to-profit, accrual quality, persistence, predictability, smoothness, relevance, conservatism and timeliness. In the cost of equity pricing tests, when earnings quality is proxied using one construct (accrual quality), it is found to be associated with the cost of equity. However, when the additional nine constructs are included in the regression models, accrual quality loses statistical significance. Various other constructs are found to be associated with the cost of equity depending on the choice of the cost of equity proxy. In the trading strategy tests, there is some initial evidence of trading strategy opportunities for firms with high quality earnings. However, after deleting outlier observations with annual buy-and-hold returns of greater than 200% the potential for earning abnormal returns from a hedge portfolio strategy disappears. The existence of Australian evidence on the accruals anomaly provides a convenient basis to validate the results of the earnings quality trading strategy tests. Although no clear evidence on the accruals anomaly is found, results are obtained which appear to be consistent with prior Australian evidence of the accruals anomaly, depending on the research design choices made. Overall, the evidence on whether earnings quality is priced or mispriced in Australia is best viewed as inconclusive. It highlights the importance of conducting thorough robustness tests and suggests a need for caution by researchers in making inferences from a narrow set of earnings quality constructs and research design specifications.
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Wang, Chin-Chih, and 汪勁志. "Stakeholders and Earnings Quality." Thesis, 2016. http://ndltd.ncl.edu.tw/handle/87137875846191131041.
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碩士中國文化大學
會計學系
104
The purpose of this study is to explore the impact of various stakeholders on earnings quality, using non-financial firms listed on the Taiwan Stock Exchange and Taipei Exchange from 2011 to 2014. To examine the casual relations, all experimental variables are measured in difference format. The results show that the three variables measuring increases in shareholders of large shareholders, directors and supervisor are negatively associated with earnings management, respectively. Such findings indicate that increased shareholdings of large shareholders, directors and supervisors can lead to better earnings quality. The variables measuring increases in managers’ shareholdings and independent directors are positively associated with earnings management, respectively. Such results imply that greater power of management and more independent directors promote managers’ behavior of earnings management. Moreover, this study also shows that firms exhibit more earnings management behavior in cases where firms change audit firms.
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Lee, Yu-Wen, and 李佑文. "IFRS and Earnings Quality." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/67205101360227149873.
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碩士輔仁大學
會計學系碩士班
102
The purpose of this study is to examine that Taiwan adopting IFRS in 2013 is associated with earnings quality. The study uses discretionary accruals based on Kothari et.al（. 2005）cross-sectional Modified Jones Model to proxy earnings quality. The empirical results indicate the unsigned discretionary accruals in IFRS adoption year (i.e. 2013) is significantly higher than the counterpart of non IFRS adoption year (2003-2012), suggesting IFRS adoption lowers earnings quality. The study performs several additional tests, including comparing year 2013 with year 2012 test, the electronics/non-electronics industry test,positive/ negative discretionary accruals tests, listing type dummy variable test, and original data test. The empirical results of these additional tests are consistent with the main test results.
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Jian, Wei-Jie, and 簡偉傑. "Audit Quality, Mandatory Rotation and Earnings Quality." Thesis, 2013. http://ndltd.ncl.edu.tw/handle/51916950571815869398.
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碩士國立東華大學
會計與財務碩士學位學程
101
This study examines the association between audit quality and earnings quality in firms trading on Taiwan Stock Exchange and GreTai Securities Markets from 1986 to 2010. This study measures audit quality with Big 4 auditors and auditor tenure and measures earnings quality with dividends and conservatism. This study expects that the firms with better audit quality have more persistent earnings, and they tend to pay dividends regularly. This study also expects that audit quality more positively affects firms’ dividends and conservatism after the mandatory rotation was promulgated in 2003. The results show a significant and positive association between audit quality and dividend payout. Such an association is more pronounced after the mandatory rotation was promulgated. Moreover, the mandatory rotation increases the level of firms’ conservatism. The results also show a significant and positive association between auditor tenure and dividend payout after the mandatory rotation was promulgated. However, the positive association between big audit firms and dividend payout becomes insignificant after the mandatory rotation was promulgated. This result is attributed to the weak association between the mandatory rotation and firms’ propensity toward changing audit firms. Besides, this study conducts several sensitivity analyses, such as winsorizing observations that have the largest 1% and smallest 1% values for variables, using the amount of dividends paid and the firm’s dividend growth rates instead of the dividend possibility and controlling for the potential impact involving employee-bonus expensing policy, and finds the regression results remain robust.
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Chuang, Ya-Hui, and 莊雅惠. "Earnings patterns, Earnings quality, Discretionary accruals, accrual estimation errors." Thesis, 2004. http://ndltd.ncl.edu.tw/handle/88340248915385327816.
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碩士輔仁大學
會計學系碩士班
92
This study investigates whether the pricing effects associated with three earnings patterns (increasing annual earnings, annual earnings that consistently meet or beat management forecasts, and smooth earnings) are related to each other and, separately, to the quality of the underlying earnings. The sample comprises 968 firm-year observations during 1997-2001. The study measures earnings quality in two ways: the standard deviation of the past five years regression residuals from Dechow and Dichev (2002) accrual estimation errors model and performance-adjusted discretionary accruals based on results in Kothari et al. (2002). Controlling for other variables known to affect earnings multiples, the result of empirical study present that earnings multiples are increasing for firms whose earnings consistently meet or beat management forecasts and reported smooth earnings, but decreasing in the number of years that the firm reports increasing annual EPS. In addition, the market rewards high quality earnings with price premiums. We also identify distinctly-priced incremental elements of two patterns (consistently increasing annual earnings and meet or beat management earnings forecasts) and earnings quality. Finally, contrary to our expectation, investors do not appropriately interpret the earnings patterns conditionally on the signals of earnings quality.
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Lin, Pin-Hsin, and 林品馨. "CEO Reputation and Earnings Quality." Thesis, 2012. http://ndltd.ncl.edu.tw/handle/92p77b.
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碩士國立東華大學
會計與財務碩士學位學程
100
Financial reporting credibility is important because decision-useful information is well appreciated by all market participants. This paper explores if CEO reputation matters to corporate financial reporting quality by examining their connections. The efficient contracting hypothesis suggests that reputed CEOs are associated with good earnings quality, while the rent extraction hypothesis argues the opposite. Empirical results indicate that reputed CEOs are associated with better earnings quality than less-reputed CEOs, supporting the efficient contracting hypothesis. In addition, this paper incorporates corporate governance variables to investigate their impact on earnings quality on firms helmed by reputed CEOs. Empirical findings indicate no significant effects, advocating the stewardship theory. In-depth analysis reveals that reputation effects are more pronounced in family firms for their strong incentive to protect longevity and reputation of the family. In the family firm context, non-family member CEOs is more sensitive to reputation than family member CEOs in providing higher quality earnings information. The results respond the public interest in knowing that CEO reputation matters to financial reporting quality.
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Lin, Chia-jung, and 林佳蓉. "Corporate Governance and Earnings Quality." Thesis, 2009. http://ndltd.ncl.edu.tw/handle/25779962226535223261.
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碩士國立高雄第一科技大學
財務管理所
97
The purpose of this study is to investigate the influence of corporate governance on earnings quality. The empirical analysis indicates that the firm with smaller deviation between ultimate control and ownership, greater management ownership, higher board of outside director’s member''s proportion, higher blockholder shareholding and lower institutional shareholding will reduce effectively for managers to engage in earnings management thus have better earnings report quality of the firm. After the implementation of corporate governance system in Taiwan, the corporate governance enhances the effectiveness of the quality of financial statements, management ownership, blockholder shareholding, and the Chief Executive officer who also serves as the Chairperson of the Board (called CEO/COB duality) especially. This also indicates that the corporate governance system is help to promote the strong development of securities markets and enhance the quality of information disclosed.
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Chih-ChiehHsieh and 謝志杰. "Earnings Quality and Innovation Strategies." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/59241783620376003285.
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碩士國立成功大學
會計學系
102
Earnings Quality and Innovation Strategies Abstract This paper examines how earnings quality affects innovation strategies and their economic consequences. Previous literatures document that accounting information quality improves investment efficiency, because it reduces information asymmetry between firms and investors. Earnings management mainly affects accounting information quality. Innovation comes up with high uncertainty of future revenue and growth. Therefore, accounting information quality will play an important role on reducing information asymmetry when managers consider patent investment strategies. However, different earnings management methods have different impacts on cash flow volatility. When firms have more real earnings management activities, the cash flow volatility of firms will higher than those with less real earnings management. In contrast, conducting accrual earnings management mainly affects the reporting earnings instead of cash flow volatility. Previous literatures only examine how accrual earnings management affects investment efficiency. In-house patenting activities need consistently financial support. In contrast, patent purchasing activities need one-time financial support. Therefore, firms with high volatile cash flow have difficulty to invest in-house patenting activities. This paper tries to examine how real earnings management and accrual earnings management affect patent investment strategies and how these two earnings management strategies and patent investment strategies simultaneously affect firms’ value. Our findings support our arguments and indicate that different earnings management strategies have different impact on the innovation strategies and economic consequences.
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Hsu, Yu-Jing, and 許育菁. "Earnings Quality and Stock Repurchases." Thesis, 2010. http://ndltd.ncl.edu.tw/handle/44125355408282140607.
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碩士東海大學
會計學系
98
This study examines the relationship between earnings quality and stock repurchases. The information asymmetry between management and investors may cause a firm’s stock undervalued. Thus, firms use stock repurchases announcements to signal to the market that stocks are undervalued and/or favorable future prospects, reducing the information asymmetry between management and investors. However, the better earnings quality, the more accurate investors assessing firm’s performance, and the less the information asymmetry between firm managers and investors. Therefore, this study investigates how earnings quality affect management’s decision in stock repurchases. The sample included listed companies made their first repurchase announcements and listed companies do no made repurchase announcements during 2000 to 2008 in Taiwan. The following methods are used to test hypotheses. First, Logit regression model is used to examine relationship between earnings quality and likelihood of stock repurchase. Second, OLS regression model is used to examine relationship between earnings quality and repurchase announcement returns. Third, Tobit regression model is used to examine relationship between earnings quality and actually repurchase shares after the repurchase announcements. The results show that firms with better earnings quality are less likely to announce stock repurchases and have less positive stock price reaction when firms announced stock repurchases. However, the study does not observe the relationship between earnings quality and actual repurchases. The result indicates that firms use actual repurchases to signal their stock undervalued because of information asymmetry. After announcements, the stock price have been corrected, and then firms have less motivation to buy stock back.
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Chen, Yun-Ying, and 陳雲英. "Managerial Overconfidence and Earnings Quality." Thesis, 2016. http://ndltd.ncl.edu.tw/handle/13091880793294118961.
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碩士國立中興大學
高階經理人碩士在職專班
104
Due to the scarcity of resources, investors and creditors must carefully evaluate companies'' risk before making their relevant decisions. However, the information asymmetry between outside capital providers and managers may lead to adverse selection and moral hazard problems. Financial reporting is generally considered to be an important tool to reduce agency costs caused by information asymmetry. Although earnings quality is an important characteristic of financial reports that affects allocation of resources, individual manager characteristics actually influence the financing reporting process. Overconfident managers tend to overestimate future returns from their firms’ investment. Thus, this study predicts that overconfident managers will tend to delay loss recognition and use less conservative accounting. Based on a sample of Taiwanese listed companies in the electronics industry from 2005 to 2014, this study investigates the relationship between managerial overconfidence and earnings quality. This study classifies managers as overconfident using a dichotomous variable where OverCon is set equal to 1 if managers increase their ownership in the firm by 10% during the fiscal year. This study uses accruals and discretionary accruals as proxies to measure earnings conservatism. The empirical results show that managerial overconfidence is significantly and negatively associated with negative accruals, indicating that overconfident managers use less conservative accounting. This study further finds that managerial overconfidence is positively associated with positive discretionary accruals, suggesting that overconfident managers tend to manage their earnings upward. Thus, this study suggests a negative association between managerial overconfidence and earning equality.
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Fang, Hsin-Ning, and 方馨甯. "Audit Committee and Earnings Quality." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/15806541453991269279.
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碩士銘傳大學
會計學系碩士班
103
In this study, we use non-financial Taiwanese public firms from 2007 to 2013. This research investigates whether formation of an audit committees and the quality of an audit committees are associated with improved earnings quality. The quality indicators contains the size of the audit committee, members of the accounting or financial expertise, chairman having accounting or financial expertise, frequency of meetings, members’ attendance and number of members serving the independent directors. The empirical results show that there is no relationship between formation of an audit committees and earnings quality. However, for those companies with established audit committees, our results indicate that firms with more accounting experts in audit committees have the effects on constraining accrual earnings management and improving earnings quality. In addition, larger audit committees may cause the operation inefficient and couldn’t achieve the effect of supervision of financial reporting. Because each member have their own thought, so the issues can’t be fully discussed and communication.
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Silva, Cristina Gaio. "Earnings quality: an international analysis." Doctoral thesis, 2008. http://hdl.handle.net/10071/12004.
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JEL classification: G34, G38, F36We construct an aggregate earnings quality measure based on seven earnings attributes (accruals quality, persistence, predictability, smoothness, value relevance, timeliness, and conservatism) to study earnings quality around the world. We first examine the relative importance of firm, industry, and country characteristics in explaining earnings quality. We find that firm characteristics are the major determinant of earnings quality, and that firm and industry characteristics have incremental explanatory power beyond country heterogeneity in explaining earnings quality worldwide. Our results hold across different levels of a country’s economic development and investor protection. We also find that firm and industry characteristics have become more important in the late 1990s, as accounting and financial globalization accelerated. We then examine the relationship between firm-level corporate governance and earnings quality. We find a negative relation between corporate governance and earnings quality, which suggests they have substitute roles. This relation is particularly strong in developed countries, in countries with strong investor protection, and for cross-listed firms. Thus, governance mechanisms seem to be able to make up for poorer earnings quality, especially in high-quality country environments. Finally, we investigate the relation between firm valuation and earnings quality. We find a positive relation between firm valuation and earnings quality, which suggests that firms with higher earnings quality are valued more highly in stock markets. This relation is particularly strong for firms with greater investment opportunities that need to access capital markets, and for firms in low investor protection countries. Our findings support the idea that investors require a premium for the information risk associated with lower-quality earnings.
Para analisar a qualidade dos resultados contabilísticos internacionalmente, construímos uma medida global com base em sete atributos dos resultados (accruals quality, persistence, predictability, smoothness, value relevance, timeliness and conservatism). Começamos por analisar a importância relativa das características da empresa, da indústria e do país em explicar a qualidade dos resultados contabilísticos. Os resultados empíricos indicam que as características da empresa têm um forte poder explicativo, relativamente às características do país, e que são o principal determinante da qualidade dos resultados. Esta evidência é valida independentemente do nível de desenvolvimento económico e protecção legal ao investidor do país. O poder explicativo das características empresa tem vindo a aumentar com a aceleração da globalização dos sistemas contabilísticos e mercados financeiros. De seguida analisamos a relação entre o sistema de governação e a qualidade dos resultados. Os resultados evidenciam uma relação negativa, sugerindo que um forte sistema de governação pode, de certa forma, compensar resultados de menor qualidade. Esta relação de substituição é mais evidente para empresas cross-listed nos E.U.A., e em países mais desenvolvidos economicamente e com maior protecção legal ao investidor. Por fim analisamos o impacto da qualidade dos resultados no valor da empresa. Os resultados sugerem que empresas com maior qualidade de resultados são mais valorizadas, suportando a ideia de que o mercado exige um prémio pelo risco de informação associado a resultados contabilísticos de baixa qualidade. Este impacto é mais evidente em empresas com maiores oportunidades de investimento e que necessitam de recorrer ao mercado de capitais, e em empresas situadas em países com menor protecção ao investidor.
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Lin, Ya-Jou, and 林雅柔. "Earnings Quality and Debt Contracting." Thesis, 2006. http://ndltd.ncl.edu.tw/handle/09382399583410307981.
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碩士輔仁大學
會計學系碩士班
94
This study uses 2000~ 2004 listed companies to test whether the companes’ creditors examine the financial statements provided by the listed companies to check their earnings quality and decide the terms of the loan contracts and mitigate the risk of default. This research is the first one in Taiwan to examine the relationship between earnings quality and debt contracting. This thesis adopts absolute Jones-model, modified-Jones-model discretionary accruals and absolute total-accruals to proxy the earnings quality. Furthmore, this study uses loan rate, maturity, collateral to examines the the terms of the loan contracts. The empirical findings of this study are as follows: First, the larger the absolute Jones-model and modified-Jones-model discretionary accruals, the higher the loan rate. This results show that for a company with lower earnings quality, the interest rate will be higher to compensate the potential higher default of lenders and the cost of the borrowing will be higher, accordingly. Second, the larger the absolute Jones-model, modified-Jones-model discretionary accruals and absolute total-accruals, the shorter the maturity of the loan contracts. This evidences that in order to mitigate the high default risk of borrowers with poor earnings quality, the lenders will reduce the maturity of the borrowers’ loan contracts. Third, there are no relationships between the collateral requirements in the loan contracts and any earnings quality proxy variable. This shows that isted companies, maybe, almost borrow money by credit instead of by collateral results.
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Teng, Yi-chia, and 鄧伊珈. "Management Quality and Earnings Management." Thesis, 2012. http://ndltd.ncl.edu.tw/handle/90728589492930802248.
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碩士國立高雄第一科技大學
財務管理研究所
100
Most of the former studies had discussed the relationship between corporate government and earnings management. There were few literature focused on the relationship between management quality and earnings management. Therefore, the paper examines the relationships among management quality, corporate government, and earnings management to companies listed in Taiwan Stock Exchange .The management quality consists of top management team size, educational levels and numbers of business educational background in the team .The empirical results show that there are significant negative relationship between top management team size and earnings management .We also find that there is no obviously association among percentage of the management team with a Master''s degree, number of business educational background in the team and earnings management.
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Fan, Sheng-Yi, and 范聖頤. "Auditor Sanction and Earnings Quality." Thesis, 2018. http://ndltd.ncl.edu.tw/handle/bfxcns.
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碩士輔仁大學
會計學系碩士班
106
This study investigates the relationship between auditor sanction and earnings quality. In addition, the study adds the influence of amending Certified Public Accountant Law to discuss the above relations. This study uses the amount of discretionary accruals as the proxy of earnings quality. The observation period is from 1999 to 2016. This study uses companies that are listed TSE and OTC Company which are audited by the CPA and have been declared the sanction announcement by the authorized officials. This study takes the current year and one year before the declared date to determine whether the earnings quality has improved. The empirical results indicate the auditor who was punished severely didn’t make their earnings quality improved. After adding the influence of amending Certified Public Accountant Law, the earnings quality was improved limitedly. However, the auditor who was punished lightly did make their earnings quality improved. After adding the influence of amending Certified Public Accountant Law, the earnings quality become worse. And no matter how lightly or severely the punishment will be, the influence of amending Certified Public Accountant Law is very limited to auditor sanction.
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Chien, Yi Fen, and 陳怡芬. "The Association between Mandatory Management Earnings Forecast and Earnings Quality." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/3cv28n.
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碩士國立中正大學
會計與資訊科技研究所
102
Accounting quality is defined not only by the relevance of underlying financial performance to the decision but also by the abilities of the accounting system related to measure performance. In Japan, all management earnings forecasts are all mandatory, this study find the connection between mandatory MEFs and accounting quality. In generally, modified MEFs have a positive correlation on accounting quality.
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HOU, PAO-LUNG, and 侯寶龍. "The Impacts of Earnings Quality and Asset Quality of Negative Earnings Firms on Security Price." Thesis, 2004. http://ndltd.ncl.edu.tw/handle/75778448216744009712.
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碩士國立臺北大學
會計學系
92
Previous capital market research in accounting mainly focused on the relationships between earnings and security returns. Since the explanatory power of earnings on security returns was not satisfactory (Bernard,1989;Lev,1989),many accounting researchers have attempted various ways to improve the explanatory power of financial statement information on security returns. Some researchers（Berger,Ofek and Swary,1996;Burgstahler and Dichev,1997;Collins,Pincus and Xie,1999）empirically find that stock markets react differently to firms with positive earnings and firms with negative earnings. If firms with negative earnings are pooled with firms with positive earnings,the explanatory power of earnings on security returns will be reduced. As a firm may have two value:going-concern value and liquidation value. If the earnings of a firm is negative or insignificantly positive,it is meaningless for investors to compute going-concern value for the firm. Instead,the investor should emphasize on liquidation value of the firm. Thus,these accounting researchers indicate that,to increase the explanatory power of financial statement information on security returns,earnings and book value should be considered simultaneously. Recently,the economic conditions of Taiwan have changed drastically. The percentage of the firms listed on TSE and OTC that suffered lossed had increase from 7.63％ in 1994 to 29.07％ in 2001. Accordingly, research on the equity valuation of firms with negative is warranted. Using observations of annual financial information for listed companies in TSE and OTC for the period 1994-2002, this paper is intended to investigate the impacts of earnings quality and asset quality of negative earnings firms on security price. The results are as the following. 1.There are information contents in earnings and book value of negative earnings firms. 2.Because of different earnings quality, the information contents of operating income per stock and investment income per stock in negative earnings firms are different. 3.Because of different asset quality, the information contents of （1）accounts/notes receivable and inventory, accounts/notes receivable and fixed assets, accounts/notes receivable and other assets,（2）short-term investment per stock and other assets per stock,（3）cash /cash equivalents and inventory, cash /cash equivalents and fixed assets, cash /cash equivalents and other assets in negative earnings firms are different.
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Chen, Yen-Hao, and 陳彥豪. "New Information from Earnings Announcements, Earnings Quality and Stock Price Informativeness." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/27575332210390182519.
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碩士國立臺灣大學
會計學研究所
102
Abstract In accounting researches, the role of financial reporting in equity evaluation is hotly debated. Stock price reactions are widely used to measure the usefulness of financial reporting in equity evaluations. Short-term price reactions to earnings announcement are used to capture new information from financial reporting around earnings announcements. On the other hand, the association between long-term price reactions and earnings measures the earnings quality and informativeness. Prior literatures provided positive, negative, and unrelated predictions about how the amount of new information from financial reporting relates to its earnings quality and stock price informativeness about future earnings. To try to contribute to this question, I add a firm-year measure for new information from financial reporting into Collins, Kothari, Shanken and Sloan’s [1994] model. In this study, the measure for new information from financial reporting is the statistical significance of difference between averages of daily stock returns in earnings announcement and non-earnings announcement period. The use of statistical significance measures the probability that information in earnings announcement is the same as the information in non-earnings announcement period. That is, if information in earnings announcement is less possible to be the same as the information in non-earnings announcement period, the more information is provided by earnings announcements. The results show that financial reporting generally provides significantly new information in my data sets. Financial reporting with more new information in the earnings announcement has better earnings quality and higher informativeness. The results are robust with respect to the presence of other well-identified determinants of earnings quality and stock price informativeness.
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Lai, Li-Wen, and 賴梨雯. "The quality of accruals, earnings quality and stock returns." Thesis, 2006. http://ndltd.ncl.edu.tw/handle/01662876544725404826.
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碩士輔仁大學
會計學系碩士班
94
Title of Thesis: The quality of accruals, earnings quality and stock returns Name of Student: Li-Wen Lai Advisor: Min-Jeng Shiue Total Pages: 84 Month/Year: 03/2006 Key Words: quality of accruals, earnings quality, stock returns, accruals, variability of accrual components, variability of discretionary accruals Abstract: This research examines the relation among the quality of accruals, earnings quality and stock returns. We follow the approaches suggested by Sloan (1996) and Chan et al. (2006) to measure accruals and earnings quality. Samples are collected from Taiwan Listed firms between 1999 and 2003. We find that depreciation and amortization are the largest amounts of total accruals, but it displays little variability across firms. It shows that the mean and the standard deviation of the variability of depreciation and amortization account for only about 0.60% and 0.77% of prior period total assets respecitively. Besides, in a comparison with total accruals, current accruals have more information relatively. These findings are similar to the prior research (eg., Sloan 1996). The empirical evidences also show that accruals (the difference between accounting earnings and cash flows) and the variability of their components which included the variability in accounts receivable, inventories, other current assets, accounts payable, other current liabilities and depreciation and amortization, are reliably and negatively associated with stock returns. Earning quality parameters are negatively associated with stock returns. In addition, we find that both the variability of discretionary accruals and nondiscretionary accruals are negatively correlated with stock returns. In multivariate regression analyses respect, we find a negative and significant relation between the quality of accruals and stock returns. As accurals and the variablity of their components are smooth, they are accompanied with high earning quality and the quality of accruals, which suggest higher stock returns. These findings are consistent with the arguments provdied by Schipper and Vincent (2003) and Chan et al.( 2006).
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LIN, YI-HSUAN, and 林以玄. "Whether the Establishment and Quality of Audit Committees Can Achieve Better Earnings Quality– By the Difference between Unaudited Earnings and Audited Earnings." Thesis, 2019. http://ndltd.ncl.edu.tw/handle/ck393y.
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碩士國立臺北大學
會計學系
107
Using firms listed in the Taiwan Stock Exchange and Over-The-Counter from 2009 to 2017 as a sample, this study examined whether the establishment and quality of audit committees can achieve better earnings quality by the difference between unaudited earnings and audited earnings. In terms of the quality of the audit committee, it is measured by the following six indicators: the size of the audit committee, the numbers of member with expertise in accounting or finance, whether the convener has expertise in accounting or finance, the number of directorships held by audit committee members, frequency of meetings, and the attendance of member. The additional tests in this study, we use the Logistic model to explore whether accountants would be less likely to adjust unaudited earnings for the firms that set up audit committees and companies where the audit committees operate well. The empirical results show that the difference between unaudited earnings and audited earnings will not be narrowed by the setting of the audit committee. In terms of the quality of the audit committee, we found that the convener having accounting or financial expertise can improve earnings quality, and the firm with more meetings of the audit committees tend to report greater difference between unaudited earnings and audited earnings. When managers improperly understated earnings, those firms with higher average attendance rate of the audit committees have higher audit adjustment. The results of the additional tests indicate that when the convenor of the audit committee has financial or accounting expertise, the probability of an accountant adjusting the company's earnings is low, similar to the original findings.
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Zhao, Pin-Sheng, and 趙品盛. "Audit Firm Switch And Earnings Quality." Thesis, 2017. http://ndltd.ncl.edu.tw/handle/87436917932923833971.
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碩士國立中興大學
會計學研究所
105
Using the absolute value of discretionary accruals as the proxy of earnings quality, this studyinvestigates the association between earnings quality and auditor switch. The study further examines how different types of companies that had auditor switch affects their earnings quality.Empirical data of listed and OTC companies were gathered from the TEJ data bank in 2002-2015. Empirical results indicate that earnings quality of the company is lower when there was an auditor switch. The earnings quality of the company which had only oneauditorswitched is higher than that of the company that had two auditors switched simultaneously in the same firm. Besides, the earnings quality of the company which had auditor switched in the firm is higher than that of the company that switched the audit firm. Moreover, in the sample of auditor switch, the study discovers that older companies have better earnings quality than younger companies. In the sample of audit firm switch, the study finds that bigger-sized companies have better earnings quality than smaller-sized companies. However, anadditional test that used real earnings management as the proxy of earnings quality does not produce consistent results. Yet, results of the study provide more rooms for discussion especially for the earnings management methods adopted by companies.
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Liu, Chia-Ling, and 劉佳玲. "Preliminary earnings quality of nonprofit hospitals." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/6g8wgh.
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碩士淡江大學
會計學系碩士班
103
In this study, we use the information of financial statements in not-for-profit hospitals to view earnings quality and explore the indicators in different sizes, different patterns whether earnings quality of not-for-profit hospitals is different. We use interact analysis earnings quality with using hospital type and hospital size. In large hospitals, large enterprise-type hospitals are the highest earnings smoothness; large religion-type hospitals are the highest earnings persistence which use the measurement of the current earnings; large general-type hospitals are the smallest abnormal accruals which do not estimate and are the highest earnings conservatism. In medium hospital, medium enterprise-type hospitals are the highest earnings persistence which use the measurement of operating cash flow and accruals; there are not a better characteristics of earnings quality when medium religion-type hospitals compared with others; medium general-type hospitals are the highest earnings smoothness. In small hospital, small enterprise-type hospitals are without samples; small religion-type hospitals are the highest earnings persistence which use the measurement of operating cash flow and accruals;there are not a better characteristics of earnings quality when small general-type hospitals compared with others.
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Ching-HuaChu and 朱鏡樺. "Pay-Performance Sensitivity and Earnings Quality." Thesis, 2014. http://ndltd.ncl.edu.tw/handle/59547873937065425754.
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碩士國立成功大學
會計學系
102
In 2004, the modified Regulations Governing Information to be Published in Annual Reports of Public Companiesof Taiwan requires public companies to disclose the interval of CEO compensation in annual reports. Further the amended Securities and Exchange Act requires that companies whose stock listed in the Taiwan Stock Exchange (TWSE) or Over-the-counter (OTC) markets to set up the compensation committee. The purpose of these newly announced regulations is to improve the efficiency of CEO compensation. The main objective of this study is to investigate whether higher CEO pay-performance sensitivities (PPS) may provide CEO’s stronger incentive to manage earnings, and how the earnings management motivated by PPS affects the value-relevance of accounting information. I collect the listed firms from 2007 to 2012. The empirical results show that the association between PPS and discretionary accruals is positive significantly. The findings suggests that the higher the correlations between CEO compensation and reported income, the more likely for CEO to manage earnings. Further, I find that companies with high PPS have lower earnings response coefficients than those with low PPS. This result suggests that higher discretionary accruals do not significantly enhance the value relevance of earnings.
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Rakhman, Fuad. "Earnings quality and CFO financial expertise." 2009. http://digital.library.okstate.edu/etd/Rakhman_okstate_0664D_10478.pdf.
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Mahmood, J. "Earnings quality and clean surplus principles." Thesis, 2019. https://eprints.utas.edu.au/34042/1/Mahmood_whole_thesis.pdf.
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Earnings quality has a range of measures, including persistence, smoothness and accruals. There is no unique definition of earnings quality. Proposals to move to a notion of Hicksian income to underpin earnings quality are appealing. This thesis explores two concepts of surplus: clean and dirty. Clean surplus (CS) earnings require that all items that affect the book value of equity be included in earnings and flow in the income statement however, flows of dirty surplus (DS) arise if certain variations in shareholders’ equity bypass the income statement and are directly reported in retained earnings.
Clean surplus earnings provide the underlying earnings strength of a firm in value creation and provide transparent information. However, dirty surplus reduces the informativeness and predictive power of accounting earnings, impairs the quality of earnings as a significant input for contracting and valuation, captures all sources of value creation, and reduces ‘transparency’ and ‘visibility. This appeal to use clean surplus as a theoretical understanding of income. This theoretical (calculated) income is then compared to other comprehensive income (OCI). Contradictory opinions regarding the recycling timing, location of OCI items and reporting of large losses in OCI after 2011 increased the importance of FASB update (ASU) 2011-05.
This study addresses the question of quality of earnings with respect to the clean surplus assumption after 2011. Its purpose is to assess the quality of reported earnings of Compustat firms, major industries and individual firms, by analysing the patterns of the relationship between earnings disclosed in the income statement and earnings disclosed in the other comprehensive income (OCI) statement. For this purpose, this study analyses the patterns of net income (NI), OCI, accumulated other comprehensive income (AOCI), clean surplus book value and reported book value, using SPSS 16 to analyse data for the period 1995–2014. Clean surplus book value is based on changes in assets and labilities unrelated to dividends that pass through the income statement.
This study finds that, for Compustat firms and most industry groupings, OCI is unusually negative and the accumulated sum of other losses is very high after 2011, which caused divergence of reported book value from clean surplus book value. The net reported book value of Compustat firms and the assets of most of the industry groupings are noticeably lower than the net asset values that would be expected from earnings reported in the income statement (i.e., assuming clean surplus principles in accounting measurement). The impact of this is that reported earnings generally provide an overoptimistic picture of net assets throughout the period.
This study also finds evidence in three case studies that the movement of OCI losses attributed to discontinuous operation goes through retained earnings and gains on the statement of operation, indicating that these transactions are affecting earnings quality and not reversing over time. However, evidence is also found from two other case studies that regular reversal of OCI gains and losses shows less possibility of poor earnings quality.
This study finds some evidence from two case studies against the clean surplus principle that movement of repurchase and retirement of treasury stock through retained earnings affect the pattern of OCI and influence the divergence of reported book value and clean surplus book value. Based on the assumptions adopted in this study, earnings quality is judged to be lower in these firms.
This study contributes to the theoretical framework for earnings quality in several ways. The argument is proposed that clean surplus is a baseline against which reported earnings can be evaluated. Clean surplus income is considered the summary performance measure in firm valuation. This position takes the literature on comprehensive income back to firm performance, where the axiomatic principles of clean surplus impart properties to time series analysis. This study also contributes to the literature by examining why AOCI losses increase over time and may reverse in more than two years.
Cases are noted where the writing down of discontinuous operations through retained earnings remains a problem for standard setters since FASB update (ASU) 2011-05. This examination indicates that large losses are sometimes reported through OCI and, in some cases, directly through an adjustment to retained earnings without appearing in the comprehensive statement of income. This indicates that large loss transactions are affecting earnings quality by neither passing through the income statement nor reversing in short period.
There are several implications from the findings of this study. First, there are implications for the FASB update (ASU) 2011-05. A large unrealised loss is recognised through the equity section rather than the statement of comprehensive income. The omission of such very large write downs from comprehensive income has a very significant effect on a firm’s patterns of income over time and gives a greatly unrealistic picture to stakeholders of the firm’s long-term performance. Second, the reported book value of the sample companies is deviating from the clean surplus book value, which indicates that the reporting of a firm’s performance is overstated. Third, the accumulative sum of OCI indicates that reversal of unrealised gains or losses is taking more time. Fourth, this study has implications for securities exchanges and investment analysts who evaluate the earnings quality of firms over time.
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Meng-Chieh, Yu. "The Effects of Earnings Growth from Various components of Earnings on Quality of Earnings and on Earnings Response Coefficients." 2006. http://www.cetd.com.tw/ec/thesisdetail.aspx?etdun=U0001-0307200621150100.
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Yu, Meng-Chieh, and 游孟潔. "The Effects of Earnings Growth from Various components of Earnings on Quality of Earnings and on Earnings Response Coefficients." Thesis, 2006. http://ndltd.ncl.edu.tw/handle/82904504327648701987.
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碩士國立臺灣大學
會計學研究所
94
This study intends to empirically examine the effects of earnings growth from various components of earnings on quality of earnings and earnings response coefficients. In order to measure the quality of earnings, I use both earnings persistence and earnings management. The study explores whether firms with sustained increases in earnings attained by sustained increases in revenues have higher earnings persistence, less possibility of managing earnings, and larger earnings response coefficients. Results indicate that firms with revenue-maintained earnings growth do have higher earnings persistence and less possibility of earnings management and larger earnings response coefficients than those with only earnings growth. In addition, like the results in the previous literature (Ohlson, 1995), the results in this study portrays that the larger the earnings response coefficients firms have, the smaller the book value response coefficients they do.
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TANG, LI-FEN, and 湯麗芬. "FAMILY-CONTROLLED FIRMS AND EARNINGS QUALITY: FROM THE PERSPECTIVE OF EARNINGS MANAGEMENT AND EARNINGS RESPONSE COEFFICIENTS." Thesis, 2008. http://ndltd.ncl.edu.tw/handle/12399038221811934326.
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博士國立臺北大學
會計學系
96
In Taiwan, most firms are family-controlled business. And the characteristics of family-controlled firms may lead the corporate governance is unique. However, due to limited data available, there are few study investigate the relation between the family-controlled firms and the earnings quality. For this reason, this study will investigate how the characteristics of family-controlled firms affect the earnings quality. The earnings quality is measured by discretionary accruals and earnings response coefficients. By using the discretionary accruals as a proxy for earnings quality, we find that the most characteristics (such as family ownership, degree of divergence between the ultimate owner’s control and the equity ownership level, the number of oversea subsidiaries in the group, and the founder occupied CEO or chairman) will lower earnings quality. However, when the earnings quality is measured by earnings response coefficients, the most characteristics (such as family ownership, the number of non-listed subsidiaries in the group, and the founder occupied CEO or chairman) are associated with greater earnings informativeness. Furthermore, the study examine whether the relation between family ownership and earnings quality is nonlinear. However, we did not find evidence that the relation between family ownership and earnings quality is nonlinear. The study probes the relation between family-controlled firms and earnings quality, which is not fully investigated in prior literature and the results provide regulators with a guidelines to improve the earnings quality and corporate governance of family-controlled firms.
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李賜寬. "The Effect of Information Transparency on Earnings Quality and Earnings Response Coefficient." Thesis, 2006. http://ndltd.ncl.edu.tw/handle/67674490774238034122.
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碩士國立彰化師範大學
會計學系
94
Abstract Corporate scandals occur continuously from all over the world and the reason is about the opacity of corporations’ information. Consequently, investors suffer severe damages. In order to meet investors’ expectations and needs and propagate the capital market, enhancing information transparency becomes the hottest issue in the world. To improve the transparency of corporate information disclosures, Taiwan Stock Exchange Corporation (TSEC) and Gre Tai Securities Market (GTSM) requested the Securities and Futures Institute (SFI) to implement an information disclosure and evaluation system for all publicly traded and over the counter (OTC) listed in TSEC. This study divides information into two types based on it. The type Ⅰ is elevating earnings quality and the type Ⅱ is substituting for informativeness of earnings announcements. This study investigates whether the more information corporations disclose, the better earnings quality corporations have? Whether investors have different responses facing different types of information in the capital market? Research sample contains publicly traded companies from 2003 to 2004. The empirical results support that the more type Ⅰ information corporations disclose, the better earnings quality corporations have. Secondly, earnings quality and earnings response coefficient (ERC) are significantly positive. Third, the relation between the information environments produced by disclosing typeⅠ information and ERC is significantly positive. Furthermore, the more type Ⅱ information corporations disclose, the lower earnings response coefficients are. Finally, combined with two types of information, information transparency is negatively associated with market reactions to earnings announcements, but not significantly. Keywords：Information transparency、Earnings quality、Earnings response coefficient（ERC）
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Huang, Pin-Huai, and 黃品懷. "The Effect of Debt Financing on Earnings Quality and Earnings Response Coefficient." Thesis, 2012. http://ndltd.ncl.edu.tw/handle/32055957977342832741.
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碩士輔仁大學
會計學系碩士班
100
In this study I investigated the effect of earnings quality, and then investigated whether investors consider the effect to make investing decisions. From the supply aspect of earnings quality, several researches had inconsistent conclusion of the relation between debt financing and earnings quality. Some researches argued that debt could limit the incentive of earnings management of managers, while the others argued that manager would manage earnings when firms are approaching debt covenant. Because there are two different effects of debt financing on earnings quality, there may be a non-monotonic relation between debt financing and earnings quality. In this study, I used the model adopted in Ghosh and Moon (2010) to exam the non-monotonic relation between debt financing and earnings quality. The results show that there is a critical point of earnings quality when debt ratio equals 34.00%. It means that earnings quality is increasing as debt ratio when debt ratio is lower than 34.00%, but decreasing as debt ratio when debt ratio is higher than 34.00%. In this study, I also examined the effect of convertible bonds on earnings quality. The results indicate that firms with convertible bonds(CBs) outstanding have a higher critical point of earnings quality when debt ratio equal 44.38%, and firms without CBs outstanding have a lower critical point of earnings quality when debt ratio equal 27.08%. It means that the CBs reduce earnings quality. From the demand aspect of earnings quality, I examined whether debt ratio and CBs affect earnings response coefficients. The results show that firms have higher earnings response coefficients when debt ratio is close to the critical point of earnings quality. However, there is not a negative relation between CBs and earnings response coefficients. It means that this study find no evidence to support the stock market notices the negative effect of CBs on earnings quality.