A model of earnings, cash flows and accruals is developed assuming a random walk sales process, variable and fixed costs, and that the only accruals are accounts receivable and payable, and inventory. The model implies earnings better predict future operating cash flows than current operating cash...
This paper examines the relation between earnings and operating cash flow to derive and test an indicator of financial statement fraud. Accrual measurement concepts indicate that financial statement fraud should be associated with high levels of earnings relative to operating cash flow. We demonstrate th...
Bartov, E., Goldberg, S. R., & Kim, M. (2001). The valuation-relevance of earnings and cash flows: An international perspective.Journal of International Financial Management and Accounting, 12(2), 103–132. ArticleGoogle Scholar Basu, S., Markov, S., & Shivakumar, L. (2010). Inflat...
The relation between earnings and cash flows A model of earnings, cash flows and accruals is developed assuming a random walk sales process, variable and fixed costs, and that the only accruals are ac... Patricia M. Dechow and S.P. Kothari and Ross L. Watts - 《Journal of Accounting &...
Whenever there is an increase in personal income tax rate, shareholders would allow their companies to retain and reinvest the earnings. Thus, retained earnings constitute a vital source of finance for companies. However, retained earnings, when not invested profitably, are not able to increase ...
The Relation between Earnings Management Using Real Activities Manipulation and Future Performance: Evidence from Meeting Earnings Benchmarksdoi:10.2139/ssrn.816025real earnings managementearnings managementaccounting flexibilityreturn on assetscash flow management...
Earnings management and the strategic reporting of non-GAAP (pro forma)doi:10.2139/ssrn.2259379Ervin L. Black SrTheodore E. ChristensenT. Taylor JooRoy SchmardebeckSSRN Electronic JournalBlack, E. L., T. E. Christensen, T.T. Joo and R. Schmardebeck, 2013. The relation between earnings ...
: 12.0pt; lang=EN-USThird, an option-style valuation model can explain the nonlinear relationship between equity value and accounting earnings/book value... GJ Kwon - 《International Journal of Business & Management》 被引量: 3发表: 2009年 The value relevance of earnings, cash flows and book...
Therelationbetweenearningsmanagementandfinancialstatementfraud ☆ JohanL.Perols⁎,BarbaraA.Lougee UniversityofSanDiego,UnitedStates abstractarticleinfo Keywords: Fraud Earningsmanagement Analystforecasts UnexpectedRevenueperEmployee Thispaperprovidesnewevidenceonthecharacteristicsoffirmsthatcommitfinancialstatementfr...
I define accruals as the difference between reported earnings and cash flows from operations. The accrual tests compare the actual sign of accruals for a particular company and year with the predicted sign given the managers bonus incentives. The results are consistent with the theory. I also ...