Work

Managerial Ability and Earnings Quality

Year: 2012

Type: article

Abstract: 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.

Source: The Accounting Review

DOI: 10.2308/accr-50318

Authors: Peter R. Demerjian, Melissa Fay Lewis-Western, Baruch Itamar Lev, Sarah E. McVay

Institutions: Emory University, Georgia State University, Brigham Young University, New York University, University of Utah, University of Washington

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3125967361

FWCI: 90.22

Cites: 61

Cited by: 1,126

Related to: 10