Work

Why have measures of earnings quality changed over time?

Year: 2014

Type: article

Abstract: The properties of earnings have changed dramatically over the past 40 years. Prior studies interpret this trend as a decline in earnings quality but disagree on whether it results from changes in the real economy or changes in accounting standards. I find that each new cohort of listed firms exhibits lower earnings quality than its predecessors, mainly because of higher intangible intensity. I conclude that the trend of decline in earnings quality is due more to changes in the sample of firms than to changes in generally accepted accounting principles (GAAP) or in the earnings quality of previously listed firms.

Source: Journal of Accounting and Economics

DOI: 10.1016/j.jacceco.2014.04.001

Author: Anup Srivastava

Institutions: Northwestern University, University of Calgary

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $4,170

OpenAlex ID: W2031738565

FWCI: 105.8

Cites: 64

Cited by: 329

Related to: 9