Business, Management and Accounting
4 years ago

New Study Reveals Better Way to Measure Earnings Quality in Companies

Journal of Asian Finance Economics and Business
Accounting Earnings Response Coefficient: Is the Earning Response Coefficient Better or Not
Ratna Wijayanti Daniar Paramita, Isti Fadah, Diana Sulianti K. Tobing, Imam Suroso

Paper Summary

Related papers

Business, Management and Accounting
4 years ago

New Study Reveals Better Way to Measure Earnings Quality in Companies

Earnings Management
Value-based Management
Management Control
1 view
Business, Management and Accounting
7 years ago

Earnings Quality Fails to Boost Stock Returns in Sri Lankan Companies

Earnings Management
Value-based Management
Asset Pricing
1 view
Theme background image
Computer Science
8 years ago

Listed companies' earnings quality revealed: Small shareholders' judgments impacted.

Spatial Data Mining
Time Series Forecasting
Smart Manufacturing
1 view

The study compared two methods, ERC and AERC, to see which is better at measuring earnings quality. They looked at data from 69 manufacturing companies in Indonesia from 2014-2017. Using a statistical model, they found that AERC with CFO values better reflects actual earnings quality than ERC. This means that operational cash flow is important in evaluating earnings quality, and the traditional ERC model may not capture stock market reactions accurately.