The effect of accounting method on the quality of earnings

Subject Areas :

یحیی Hasas yeganeh ¹ , ملیحه Karimi ²

1 - استادیار دانشگاه علامه طباطبایی
2 - مربی گروه حسابداری دانشگاه ازاد قزوین

Received: 2015-05-10 Accepted : 2015-05-10 Published : 2011-08-23

Keywords:

Abstract :

As the earning of companies is the best decision making base of capital market, but it is threaten with inclusion of predictions, difference accounting method and earning management in earning reporting process. thus the earning precision, confidence, conscious, truth, relevancy, high rate of cash, predictability,… and its realization that called earning quality in academic board, play important rule in usefulness of earning in decision making process. Whether the quality of a firm’s reported earnings affects investors' ability to predict future earnings is still a subject of much debate among accounting researchers.lev(1989)suggests that low quality earnings may be causing the relatively low correlation between reported earning and the market’s evaluation of future earning. This dissertation used the valuation model described in Ohlson (1995) and Feltham & Ohlson (1995) to explore the possible links between accounting method choices and the ability of investors to use reported earnings to predict future earnings. The results show that quality of a firm’s reported earnings doesn’t affect investors’ability to predict future earning.

References:

 

اله یاری، اکبر، (1385)،"بررسی شکل ضعیف کارایی بازار سرمایه در بورس اوراق بهادار تهران"، پایان نامه کارشناسی ارشد، دانشگاه علامه طباطبایی، دانشکده مدیریت و حسابداری، تهران.

ثقفی، علی و غلامرضا کردستانی، (1383)، "بررسی و تبیین رابطه بین کیفیت سود و واکنش بازار به تغییرات سود نقدی"، بررسی های حسابداری و حسابرسی، شماره 37، 72- 51.

خواجوی، شکرالله و امین ناظمی، (1384)، "بررسی ارتباط بین کیفیت سود و بازده سهام با تاکید بر نقش ارقام تعهدی"، بررسی های حسابداری و حسابرسی، شماره 40، 60-37.

ظریف فرد، احمد، (1378)،" شناسایی و تحلیل عوامل موثر با ارزیابی کیفیت سود
بنگاه­های اقتصادی ایران"، پایان نامه دکتری، دانشگاه تهران، دانشکده مدیریت، تهران.

کدخدایی، حسین و علی صابری، (1381)، "شناسایی عوامل مرتبط با کیفیت سود"، مجله بورس، شماره 34، 38-32.

Aloke Ghosh & Zhaoyang Gu & Prem C.Jain, (2003), "Sustained Earnings and Revenue Growth, Earnings Quality, and Earning Response". Coefficients “Online .

Bernard,Victor,l(1995), "The Feltham-Ohlson Framework: Implications for Empiricists". Contemporary Accounting Research 2,733-747.

Carol Callaway Dee, A.Lulseged & S.Nowlin, (2002), "Earning Quality and Auditor Independence: An Examinatin Using Non-Audit Free Dat" a, Online < ssrn website>.

Dharan, Bala G. and Baruch Lev, "The Valuation Consequence of Accounting Changes: A Multi-year Examination." Journal of Accounting, Auditing and Finance 8 (Fall 1993), 475-494.

Feltham, Gerald A. and James A. Ohlson, (1995), Valuation and Clean Surplus Accounting for Operating and Financial Activities. Contemporary Accounting Research 11, 689-731.

Kris Rowland Martin, (March2002).The Effect of Accounting Method Choice on Earnings Quality.Umi Number: 3233234.

Lee, Chi-wen Jevons and Christopher R. Petruzzi, (Autumn 1989), Inventory Accounting Switch and Uncertainties. Journal of Accounting Research, 27:2, 277-296.

Sloan, R.G, (1996), DO Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings ?. The Avvounting Review, No.71, 289-315.