Competition or manipulation? An empirical evidence of determinants of the earnings persistence of the U.S. banks

Hung, Chi-Hsiou Daniel; Jiang, Yuxiang; Liu, Frank Hong; Tu, Hong

doi:10.1016/j.jbankfin.2018.01.010

Cited by 12 publications

(8 citation statements)

References 72 publications

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“…The ROE provides a direct assessment of the financial return on a shareholder's investment (Lee and Kim, 2013) and the ROA shows the bank's ability to generate income using assets (Ongore and Kusa, 2013). ROE is the ratio between net income and equity (Athanasoglou et al, 2008;Firth et al, 2016;Tan, 2016;Bikker and Vervliet, 2017) and ROA represents the quotient between the net income and the total assets (Liu et al, 2014;Saghi-Zedek and Tarazi, 2014;Chronopoulos et al, 2015;Hung et al, 2018). Dietrich and Wanzenried (2011) and Meles et al (2016) use as the denominator the total average assets and total average equity, respectively.…”

Section: Dependent Variablesmentioning

confidence: 99%

Intellectual capital and financial performance: evidence from Portuguese banks

Neves

Proença

2021

IJLIC

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This work has as the main goal to measure the intellectual capital and to analyse its relationship with the financial performance of 12 Portuguese banks between 2009 and 2016. To achieve this aim, we have used panel dynamic models, where the value-added intellectual coefficient (VAIC) model measures the intellectual capital, allowing to conclude that this capital and its components -human, structural and relational -influence the three proxies used for financial performance -return on equity, return on assets and net interest margin. Our results point out that intellectual capital components influence the Portuguese banks' performance, and for this reason should be a bet on future strategic decisions. Banks manage intellectual capital to improve their financial performance, achieving the goals of the interested parties.

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Section: Dependent Variablesmentioning

confidence: 99%

Intellectual capital and financial performance: evidence from Portuguese banks

Neves

Proença

2021

IJLIC

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“…However, the main components of earnings quality are accountability and transparency, which predict the future earnings persistence of the firm to the investors and stakeholders. This information is essential and relevant for the investors and stakeholders to make the specific decision related to the future performance of the firm (Hung et al, 2018). As the stability and the persistence of reported earnings are the fundamentals of earnings quality.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Environmental and Social Disclosure on Earnings Persistence

Ha¹,

Sibghatullah²,

Chae³

et al. 2020

IJEEP

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This paper investigates the relationship between environmental and social disclosure with earnings persistence as a proxy of earnings quality. This research is based on the secondary data obtained from the final reports of the listed firms of Malaysia. The empirical analysis applied on 136 listed firms of Bursa Malaysia throughout 2011 to 2018 with the observation of 1088. The measure of earnings persistence is derived from the panel data based on the regression of the time series model. The results of our study indicate that environmental and social disclosures are positively correlated with earnings persistence. This means that the more the level of commitment a firm shows with environmental and social responsibility, the more persistent earnings it carries. Moreover, earnings persistence is the proxy of earnings quality, and it is desirable by every investor.

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“…In addition, the number of prior studies that explored the EM-EP relationship is still limited. Hung and Jiang [8] conducted their study with a sample of 15,546 U.S commercial banks from 1986 to 2013. From the economic competition theory perspective, they suggested a positive relationship between EM and persistence.…”

Section: Literature Reviewmentioning

confidence: 99%

“…EPs are defined as the durability and repetition of earnings and indicate the extent to which present profits may be sustained in the future [4][5][6]. Numerous prior research studies have established a relationship between the quality of earnings reported in financial statements and EP [6][7][8][9]. Earnings quality may be worse, and earnings may be unsustainable, as observed by lower EPs [10].…”

Section: Introductionmentioning

confidence: 99%

Earnings Management, Board Composition and Earnings Persistence in Emerging Market

et al. 2022

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Income data are useful for making economic decisions and anticipating future revenues. Earning quality, or the utility of earnings in making decisions, is determined by real economic performance. Firms with greater performance should, on average, have higher profits quality. Managers, investors, and scholars are interested in the influence of earnings management (EM) on earnings persistence (EP). This study evaluates the relationship between these variables in terms of accrual, real EM, board composition, and EP. We conducted quantitative research using GMM regression on a sample of 228 listed businesses in the Vietnamese stock market from 2014 to 2017. Our findings indicate that accrual earnings management (AEM) is associated with a negative connection with EP, but real earnings management (REM) is associated with a mixed association with EP. Additionally, the data indicate that board of directors (BODs) play a critical role in EP. Our research contributes to the existing body of knowledge by establishing a foundation for future research in this subject and by proposing some feasible options for functional government agencies and enterprise management interested in enhancing EP.

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Competition or manipulation? An empirical evidence of determinants of the earnings persistence of the U.S. banks

Cited by 12 publications

References 72 publications

Intellectual capital and financial performance: evidence from Portuguese banks

Intellectual capital and financial performance: evidence from Portuguese banks

The Impact of Environmental and Social Disclosure on Earnings Persistence

Earnings Management, Board Composition and Earnings Persistence in Emerging Market

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