In this study, I investigate whether market learning explains the absence of the accrual anomaly in recent years by examining three conditions associated with the presence of the anomaly in prior research: (i) a differential relation between future earnings and cash flows versus accruals, (ii) incorrect weighting of cash flows and accruals by investors when predicting earnings, and (iii) associ...

• Politically connected IPO issuers report income-increasing discretionary accruals. The greater the issuers’ dependence on politics, higher Investors fully incorporate accruals information into prices. At-issue systematically predict future reported performance. IPOs are less likely to fail. Using hand-collected data from U.S., we examine influence of political money contributions (PMC) financ...

This paper investigates the relationship between bank debt and earnings management in private SMEs a bank-oriented economy. In this study, we leverage sample of 4866 Italian from 2005 to 2012 propose new metric isolate annual increase debt. The results our OLS regression suggest that, even though monitoring is an effective mechanism constrain firms’ management, firms engage higher income-increa...

The objective of this paper is to examine the impacts stock market segmentations (SMS) and surplus free cash flow (SFCF) on income-increasing discretionary accruals. study also provides initial evidence regarding influence audit quality (AQ) as a moderating variable those relationships. A sample non-financial firms was taken from list Amman Stock Exchange over period 2013-2019. Using Huber-Whit...

The primary objective of this study is to examine the association between the quality of mandatory earnings forecast, measured by forecast accuracy and bias, and the ownership structure of Taiwanese firms, measured by the divergence between the ultimate owner’s control and the equity ownership level. The study is based on 528 forecasts issued by Taiwanese listed firms from 1999 to 2001 which we...

This study aims at examining the effect of audit committee with accounting and finance expertise on earnings quality manufacturing companies in Indonesia. The measurement uses absolute value discretionary accrual. three measurements accruals, Jones model (Jones, 1991), modified (Dechow, Sloan, & Sweeney, 1995), Kasznik models (Kasznik, 1999). Further, current refers to Badolato, Donelson, E...

This study aims to determine and analyze the effect of free cash flow on earnings management in property real estate service sector companies listed Indonesia Stock Exchange. Earnings is measured by discretionary accruals using Modified Jones Model. The population this 62 sectors Exchange for period 2017 2019. Based purposive sampling, a sample 20 was obtained. analytical method used simple pan...

Penelitian ini bertujuan untuk mengetahui dan menganalisis pengaruh client importance, spesialisasi industri auditor workload terhadap kualitas audit. Pengambilan sampel menggunakan metode purposive sampling. Dari tersebut, diperoleh penelitian sebanyak 66 perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia periode 2016-2018. Teknik analisis digunakan dalam adalah regresi berganda deng...

Most of the current research on earnings management focuses on the detection of abnormal accruals. The purpose of this study is to detect manipulation of real activities to meet earnings targets. I analyze cash flow from operations (CFO), production costs and discretionary expenses. Using a simple model to determine the normal levels of these variables, I detect abnormally low CFO and abnormall...

A number of studies have begun to question the appropriateness widespread and pervasive usage regressions in two-step research designs accounting literature obtain variables. The use residuals from a first-step model as dependent variable second step has been used contexts such earnings management unexpected audit fees. In this paper, I provide discussion issues within step. Taking case discret...