Journal ArticleDOI
Managerial Ability and Earnings Quality
Reads0
Chats0
TLDR
This article examined the relation between managerial ability and earnings quality and found that more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations.Abstract:
: We examine the relation between managerial ability and earnings quality. We find that earnings quality is positively associated with managerial ability. Specifically, more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations. The results are consistent with the premise that managers can and do impact the quality of the judgments and estimates used to form earnings. Data Availability: Data are publicly available from the sources identified in the text.read more
Citations
More filters
Journal ArticleDOI
Role of Managerial Ability in Environmental, Social, and Economics Sustainability: An Empirical Evidence from China
Muhammad Kaleem Khan,R. M. Ammar Zahid,Khuram Shahzad,Muhammad Jameel Hussain,Mbwana Mohamed Kitendo +4 more
TL;DR: Wang et al. as discussed by the authors analyzed whether the enhancement in managerial ability accelerates the environmental, social, and economic sustainability practices or not, and found that managers' managerial ability impacts the overall sustainability practices of the firms positively.
Studying the relationship between managers' overconfidence and financial reporting quality emphasizing on intermediary role of corporate governance mechanisms
TL;DR: In this paper, the authors tried to study the relationship between managers' overconfidence and financial reporting quality emphasizing on intermediary role of corporate governance mechanisms in firms enlisted in Tehran Stock Exchange.
Journal ArticleDOI
Are voluntary internal control weakness disclosures in initial public offerings associated with managerial ability and subsequent financial reporting quality?
Tiffany J. Westfall,Mark Myring +1 more
TL;DR: In this article , the authors examined whether voluntary disclosure of internal control weaknesses (ICWs) in IPO registration statements is associated with managerial ability and subsequent SOX 404 adverse audit opinions.
Book ChapterDOI
Earnings Quality: How to Define
TL;DR: The concept of earnings quality (EQ) is a significant topic attracting considerable attention within the financial reporting process as mentioned in this paper, however, there is no agreed-upon definition for EQ or a generally accepted methodology for measuring it.
Journal ArticleDOI
Can Mixed-Ownership Reform of State-Owned Enterprises Restrain Excessive Perquisite Consumption by Executives?
TL;DR: Wang et al. as discussed by the authors used China's listed SOEs from 2013 to 2020 as samples and conducted empirical analysis on the relationship between the mixed-ownership mixed ownership reform and excessive perquisite consumption by executives.
References
More filters
Journal ArticleDOI
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
TL;DR: In this article, the authors examine the different methods used in the literature and explain when the different approaches yield the same (and correct) standard errors and when they diverge, and give researchers guidance for their use.
Journal ArticleDOI
Industry costs of equity
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this paper, the authors show that standard errors of more than 3.0% per year are typical for both the CAPM and the three-factor model of Fama and French (1993), and these large standard errors are the result of uncertainty about true factor risk premiums and imprecise estimates of the loadings of industries on the risk factors.
Journal ArticleDOI
Interaction terms in logit and probit models
Chunrong Ai,Edward C. Norton +1 more
TL;DR: In this article, the authors present the correct way to estimate the magnitude and standard errors of the interaction effect in nonlinear models, which is the same way as in this paper.
Journal ArticleDOI
The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors
TL;DR: In this paper, the authors suggest a new measure of one aspect of the quality of working capital accruals and earnings, i.e., the ability to shift or adjust the recognition of cash flows over time so that t...
Journal ArticleDOI
Audit committee, board of director characteristics, and earnings management
TL;DR: In this paper, the authors examined whether audit committee and board characteristics are related to earnings management by the firm and found a negative relation between audit committee independence and abnormal accruals.