Business Cycle and Management Earnings Forecasts

Jiang, Haiyan; Habib, Ahsan; Gong, Rong

doi:10.1111/abac.12047

Cited by 16 publications

(16 citation statements)

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“…We measure performance by using Tobin's Q ratio (Vafei et al 2015). Computations of Tobin's Q ratio in the literature often use Chung and Pruitt's (1994) approximation, which equals (market value of firm's common stock + liquidating value of preferred stock + book value of debt) divided by total assets (Jiang et al 2015). According to Chung and Pruitt (1994), this way of measuring Tobin's Q ratio is an accurate indicator in line with the correct measurement of Tobin's Q ratio proposed by Lindenberg and Stephen (1981) from a theoretical perspective.…”

Section: Variablesmentioning

confidence: 99%

Monitoring, Corporate Performance and Institutional Directors

Pucheta‐Martínez

García‐Meca

2018

Australian Accounting Review

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Our main objective is to study the effect of institutional directors on firm performance, distinguishing directors according to whether they maintain business relationships (pressure‐sensitive) or not (pressure‐resistant). Our results show that in weak regulatory and low investor protection environments, institutional directors have a negative impact on corporate performance. Our evidence shows that this negative effect is mainly driven by the role of pressure‐resistant directors and not for those directors representing mainly banks and other financial institutions with a long‐term investment horizon. These findings have implications for numerous parties, such as institutional investors, regulators, potential new board members and other corporate governance reform proponents, who frequently examine board characteristics to assess the effectiveness of boards in value‐creation policies.

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Section: Variablesmentioning

confidence: 99%

Monitoring, Corporate Performance and Institutional Directors

Pucheta‐Martínez

García‐Meca

2018

Australian Accounting Review

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“…Para investigar os efeitos dos estágios do ciclo de vida como determinantes ambientais na acurácia das previsões dos lucros do mercado de capitais brasileiro, foi utilizado um modelo, baseado nos estudos de Gatsios (2013) e Jiang et al (2015), descrito a seguir. Não obstante, por utilizar variáveis Dummy para captar os estágios do ciclo de vida, foi necessário retirar o estágio de maturidade para servir de comparação na análise de resultados.…”

Section: Modelo De Regressão Propostounclassified

“…Existe ainda uma hipótese de que, em diferentes estados da economia e, consequentemente, das empresas, os graus de incerteza e de confiança dos analistas afetam as suas crenças sobre o futuro das firmas. As evidências (Jiang, Habib & Gong, 2015) indicam que a recessão econômica está positivamente associada à precisão do erro, mas negativamente associada à precisão da previsão. Não obstante, as empresas não sofrem influência apenas desses aspectos econômicos, além de que a recessão não necessariamente afetará todas as firmas.…”

Section: Introductionunclassified

“…No entanto, é necessário ampliar o debate na literatura e expandir os achados de outros trabalhos, considerando a influência dos ciclos de vida na qualidade das previsões de lucro (e.g. Jiang et al, 2015e Hamers, 2017, com uma forma diferente de captar o efeito de cada estágio do ciclo de vida das empresas, por meio da análise do viés otimista ou pessimista das previsões, bem como ao investigar um mercado de capitais emergente, como o brasileiro, devido às suas diversas peculiaridades (obscuridades) informacionais (Girão, 2016).…”

Section: Introductionunclassified

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Accuracy in Earnings Forecast and Organizational Life Cycle Stages: Evidences in the Brazilian Capital Market

Oliveira

Girão

2018

REPeC

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“…On the other hand, business cycles have a fundamental impact on firms' reporting quality and market perception of reported earnings (Jiang, et al, 2015). Johnson (1999) shows that the quality of financial information is sensitive to business cycles.…”

Section: Introductionmentioning

confidence: 99%

Intervención de los auditores en la gestión de resultados durante la crisis económica

Alvarado

Ruiz

Briones

2019

RC-SAR

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This paper addresses earnings management from an international perspective. This study particularly analyzes whether external auditing reduces earnings managements and, if so, whether this relationship is affected by the economic crisis. The study employs a cross-country approach. The sample has 3,830 observations from listed firms from the United States, the United Kingdom, Japan, Italy, France and Spain during the period 2005–2009. Panel data are used to verify the research hypotheses. The findings show that external auditing is an important mechanism to minimize earnings management. In this sense, the Big Four and auditor specialization helped to reduce earnings managements during the economic crisis. Moreover, long audit tenure does not contribute to mitigating discretionary accruals. The study includes implications for academia, practitioners, and policymakers. It provides the literature with complementary evidence on the external auditing and earnings management relationship and how this is influenced by the economic crisis. The article benefits practitioners and policymakers by highlighting the most important characteristics of audit firms related to the mitigation of earnings managements. In addition, this study considers the recent economic crisis as an important economic factor. Given that the crisis affected most countries around the world and caused structural changes within companies, information about the consequences of the crisis and how to deal with them is an important empirical question. Este artículo aborda la gestión del resultado desde una perspectiva internacional. Concretamente, el estudio analiza si la auditoría externa reduce la gestión del resultado y, si fuera así, si esto se vio afectado por la crisis económica. Para ello se ha utilizado una muestra formada compuesta 3,830 observaciones de empresas cotizadas en Estados Unidos, El Reino Unido, Japón, Italia, Francia y España durante el período 2005-2009. Los resultados muestran que la auditoría externa es un mecanismo de gran repercusión para minimizar la gestión del resultado. En este sentido, las cuatro mayores empresas auditoras y la especialización del auditor ayudaron a reducir la gestión de beneficios durante la crisis económica. Asimismo, un mayor número de años auditando a un determinado cliente consigue que la firma de auditoría no mitigue la gestión del resultado. El estudio incluye implicaciones para académicos, profesionales, y gestores políticos. Se ofrece evidencia complementaria para la literatura sobre auditoría externa y gestión del resultado y cómo se ve influenciada ésta por la crisis económica. El artículo resulta interesante desde el punto de vista de los profesionales y gestores políticos porque resalta las características más importantes de las empresas auditoras relativas a la mitigación de la gestión del resultado. Asimismo, el estudio considera la reciente crisis económica como un importante factor económico. Dado que la crisis afectó a la mayoría de los países y causó cambios a nivel estructural dentro de las empresas, la información acerca de las consecuencias de la crisis y como tratar con ella ha sido considerada una cuestión importante desde el punto de vista empírico.

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Business Cycle and Management Earnings Forecasts

Cited by 16 publications

References 49 publications

Monitoring, Corporate Performance and Institutional Directors

Monitoring, Corporate Performance and Institutional Directors

Accuracy in Earnings Forecast and Organizational Life Cycle Stages: Evidences in the Brazilian Capital Market

Intervención de los auditores en la gestión de resultados durante la crisis económica

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