Show simple item record

dc.contributor.convenorProf A. Rashad Abdel-khalik
dc.contributor.authorMonem, Reza
dc.contributor.authorFarshadfar, Shadi
dc.contributor.editorProf A. Rashad Abdel-khalik
dc.date.accessioned2017-05-03T15:14:16Z
dc.date.available2017-05-03T15:14:16Z
dc.date.issued2007
dc.date.modified2011-05-06T06:43:37Z
dc.identifier.refurihttp://www.business.uiuc.edu/accountancy/research/vkzcenter/conferences/hawaii/papers/Monem%20Farshadfar.pdf
dc.identifier.urihttp://hdl.handle.net/10072/18626
dc.description.abstractThis paper examines earnings quality over time and across industries. We do an industry-level analysis using a sample of 340 Australian firms over the period 1992-2004 and measure earnings quality across four dimensions: accruals quality, earnings persistence, earnings predictability and earnings smoothness. We are motivated by two observed phenomena. First, there is increasing evidence of earnings management by firms when faced with specific economic incentives. Second, following corporate scandals in recent years, new legislation has been passed (e.g., Sarbanes-Oxley Act of 2002, Australian CLERP Act of 2004) to restore investors' confidence in capital markets. Our analyses of cash flow and earnings data provide evidence of no systematic decline in earnings quality over the sample period. Rather, we find some evidence of improved earnings quality over time. Thus, it is quite likely that firms engage in earnings management (and thereby reduce earnings quality) in the presence of specific economic incentives, but there is no evidence to suggest that earnings quality has deteriorated in the general population of firms. We also find that earnings quality varies across industries.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.format.extent312599 bytes
dc.format.extent65213 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypetext/plain
dc.languageEnglish
dc.language.isoeng
dc.publisherVernon K. Zimmerman Center for International Education and Research in Accounting
dc.publisher.placeUrbana-Champaign, Illinois, USA
dc.publisher.urihttps://pages.business.illinois.edu/accountancy/vk-zimmerman-center/symposium/2007-illinois-international-symposium/
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofconferencenameThe Illinois International Accounting Symposium
dc.relation.ispartofconferencetitleIllinois International Accounting Symposium 2007
dc.relation.ispartofdatefrom2007-06-07
dc.relation.ispartofdateto2007-06-09
dc.relation.ispartoflocationEast-West Centre, University of Hawaii
dc.rights.retentionY
dc.subject.fieldofresearchcode350101
dc.titleHas earnings quality declined over time? Australian evidence
dc.typeConference output
dc.type.descriptionE1 - Conferences
dc.type.codeE - Conference Publications
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.rights.copyright© The Author(s) 2007. The attached file is posted here with permission of the copyright owners for your personal use only. No further distribution permitted. For information about this conference please refer to the publisher's website or contact the authors].
gro.date.issued2007
gro.hasfulltextFull Text
gro.griffith.authorFarshadfar, Shadi
gro.griffith.authorMonem, Reza


Files in this item

This item appears in the following Collection(s)

  • Conference outputs
    Contains papers delivered by Griffith authors at national and international conferences.

Show simple item record