Comparing Abnormal Accruals Estimates across Samples
An International Test
Bibliographic Data
| ID | 19447451 |
|---|---|
| Authors | Erik Peek (0000-0002-8652-5814, Erasmus University Rotterdam, corresponding author), Roger Meuwissen (0000-0002-4889-3990, Maastricht University), Frank Moers (0000-0001-6338-5348, Maastricht University), Ann Vanstraelen (0000-0002-6139-5734, Maastricht University) |
| Year | 2013 |
| Volume | 22 |
| Issue | 3 |
| Pages | 533-572 |
| Publication date | 2013-09-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | European Accounting Review (JOURNAL) |
| Journal identifiers | ISSN: 0963-8180 • E-ISSN: 1468-4497 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/09638180.2012.746518 |
| OpenAlex | W2098466010 |
| Language | EN |
| Citations received | 3 |
| References cited | 48 |
This study examines whether accruals models' performance, in terms of predictive accuracy and power to detect earnings management, varies across strongly heterogeneous samples, such as different countries. We analyse the performance of two accruals estimation models, that is, the Modified Jones model and the Dechow–Dichev model. Using accounting data from nine countries for the period 1989–2009, we find that the models exhibit considerable cross-country performance variation and, more importantly, that this variation is systematic. We empirically establish that the international variation in sales growth persistence, accounting practices, and sample size explains a significant proportion of the cross-country performance variation, highlighting a potential inference problem in across-sample comparisons
Accrual · Earnings · Earnings Management · Econometrics · Economics · Estimation · Inference · Predictive power · Sample size determination · Statistics · Auditing, Earnings Management, Governance · Computer Science · Financial Reporting and Valuation Research · Law, Economics, and Judicial Systems · Mathematics · Accounting
The Quality of Accruals and Earnings
Earnings management to avoid earnings decreases and losses
Performance matched discretionary accrual measures
A Review of the Earnings Management Literature and Its Implications for Standard Setting
Economic Growth in a Cross Section of Countries
Specification and power of cross-sectional abnormal working capital accruals models in the Spanish context
Capital Market Liberalization, Economic Growth, and Instability
Some Evidence on the Importance of Sticky Prices
Law and Finance
| Citations per year | 0.27 |
|---|---|
| Citation span | 2015 - 2021 (7) |
| Highly cited | No |