Financial Reporting Transparency and Earnings Management

Hunton, James E.; Libby, Robert; Mazza, Cheri

doi:10.2139/ssrn.501547

Cited by 83 publications

(102 citation statements)

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“…In addition, Keating (1999) put forward that unrealized gains or losses excluded from the net income eventually become realized and the disclosure of these items allows the financial statement users to analyze future cash flow of a firm. Furthermore, Hirst and Hopkins (1998), Maines and McDaniel (2000) and Hunton et al (2006) state that the disclosure of comprehensive income components significantly makes earnings management more transparent. Furthermore, the proponents of comprehensive income reporting assert that with the introduction of comprehensive income reporting, financial statement users can make more informed decisions related to future corporate performance (Biddle and Choi, 2006;Choi et al, 2007).…”

Section: The Background Of Comprehensive Income Reporting and Past LImentioning

confidence: 99%

How Well Does Comprehensive Income Measure Future Firm Performance Compared to Net Income? Evidence From Turkish Listed Firms

Özcan

2016

bmij

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Section: The Background Of Comprehensive Income Reporting and Past LImentioning

confidence: 99%

How Well Does Comprehensive Income Measure Future Firm Performance Compared to Net Income? Evidence From Turkish Listed Firms

Özcan

2016

bmij

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“…This corporate behaviour is not without consequences for financial statement users, as experimental research has demonstrated that using a performance statement instead of hiding OCI items in the shareholders' equity has an impact on nonprofessional investors' judgements about management performance (Maines and McDaniel, 2000) and on professional investors' (analysts) valuation judgements (Hirst and Hopkins, 1998). In addition, it appears to significantly reduce earnings management behaviour in financial statement preparers (Hunton et al, 2006). IFRSs currently allow one or two performance statements (described in the preceding paragraph) and prohibits the presentation of OCI items in the statement of changes in shareholders' equity.…”

Section: Reporting Formatmentioning

confidence: 99%

Comprehensive income information: a user's perspective

Durocher¹,

Fortin²

2015

IJBAF

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Abstract:The goal of this experimental study was to examine whether nonprofessional investors actually use comprehensive income (CI) in their financial calculations and analyses. We assessed how these actors process actuarial gains and losses on defined benefit pension plans as an "other comprehensive income" (OCI) item, and whether the presentation format for CI affects their judgements and decisions, while considering the directional impact of the OCI item (actuarial loss or actuarial gain). Using 125 Canadian MBA students as proxies for nonprofessional investors, we conclude that nonprofessional investors generally do not use CI, are not affected by its presentation format, and are influenced in relatively few of their judgements by the direction of the OCI item's impact. These findings have important implications for standard setters, who may wish to better conceptualise the CI concept and revisit their current emphasis on CI information.

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“…Penelitian menunjukkan pengungkapan perusahaan berhubungan dengan asimetri informasi (Lang dan Lundholm 1993), asimetri informasi berhubungan dengan manajemen laba (Dye 1988), dan manajemen laba berhubungan dengan pengungkapan (Hunton et al 2006). Literatur mengenai hubungan antara manajemen laba dan pengungkapan sukarela menunjukkan kedua keputusan manajemen tersebut berinteraksi (Lobo dan Zhou 2001).…”

Section: Review Literatur Dan Perumusan Hipotesisunclassified

“…Penelitian menunjukkan terdapat hubungan antara tindakan manajemen laba dengan tingkat pengungkapan (Hunton et al 2006). Urutan waktu pengambilan tindakan manajemen terhadap kedua hal tersebut menentukan hubungan di antara keduanya.…”

Section: Review Literatur Dan Perumusan Hipotesisunclassified

Manajemen Laba Dan Manajemen Impresi Dalam Laporan Tahunan: Penelitian Strategi Pengungkapan Perusahaan

Suripto¹

2013

JAKI

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This study examines the impact of earnings management to impression management in Management Discussion and Analysis (MD&A). Earnings management is measured using an index that includes Keywords: earnings management, impression management, narrative disclosures. AbstractPenelitian ini menguji pengaruh manajemen laba terhadap manajemen impresi dalam Analisis dan Pembahasan Manajemen (MD&A). Manajemen laba diukur menggunakan indeks yang mencakup akrual diskresional, perataan laba, dan penghindaran pelaporan rugi. Manajemen impresi diukur menggunakan indeks yang mencakup atribusi self-serving dan bias penjelasan akuntansi. Data manajemen impresi diperoleh melalui analisis konten bagian MD&A 594 laporan tahunan perusahaan dari tahun 2004 sampai 2009. Penelitian ini berhasil memberikan bukti bahwa manajemen laba, tingkat kinerja, perubahan kinerja, dan kondisi ekonomi berpengaruh negatif pada manajemen impresi. Hasil penelitian berguna bagi regulator dalam merumuskan dan menegakkan aturan Bapepam No. VIII.G.2 mengenai laporan tahunan guna meminimalkan kemungkinan manajer melakukan manajemen laba dan manajemen impresi.

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Financial Reporting Transparency and Earnings Management

Cited by 83 publications

References 0 publications

How Well Does Comprehensive Income Measure Future Firm Performance Compared to Net Income? Evidence From Turkish Listed Firms

How Well Does Comprehensive Income Measure Future Firm Performance Compared to Net Income? Evidence From Turkish Listed Firms

Comprehensive income information: a user's perspective

Manajemen Laba Dan Manajemen Impresi Dalam Laporan Tahunan: Penelitian Strategi Pengungkapan Perusahaan

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