The Competition between Regression and Artificial Neural Network Models in Earning Management Prediction

Etemadi, Hossein; Moghadam, Hiva

doi:10.21102/irbrp.2014.09.102.11

Cited by 2 publications

(3 citation statements)

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“…The dependent variable for this study is Earnings Management and it will be measured through discretionary accruals. Following Etemadi and Moghadam (2014), and Hassan and Ahmed (2012), this study will employ the Modified Jones Model (1991), which was modified by Dechow et al (1995), and is a more powerful model for detecting earnings management. The cash flow statement approach will be used in this study to determine total accruals.…”

Section: Dependent Variablementioning

confidence: 99%

“…Baxter and Cotter (2009);Lin and Hwang (2010);Hassan and Ahmed (2012);Fodio et al (2013);Etemadi and Moghadam (2014);Katmon and Farooque (2017).Abbott et al (2000); Dhaliwal et al (2010); Hamdan & Mushtaha (2011); Thiruvadi & Huang (2011); Aldamen et al (2012); Li et al (2012); Fodio et al (2013); Metawee (2013); Abdullahi & Yunusa (2016); Lubis and Adhariani (2019); Rajeevan and Ajward (2019); Meah et al (2021).…”

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confidence: 99%

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The Relation between Audit Committee Characteristics and Earnings Management: Evidence from Firms Listed on the Egyptian Stock Market

Galal¹,

Soliman²,

Bekheit³

2022

AJIBM

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Audit committees have drawn more attention globally during the past 20 years. The audit committee, one of the core elements of corporate governance systems, is a powerful tool for regulating and overseeing management. It could have a big impact on how internal firm-board monitoring decisions are made. This study seeks to identify the unique contributions made by each proxy and to provide compelling evidence that demonstrates how an Audit Committee mechanism affects Earnings Management. This paper aims to investigate how the audit committee's characteristics affect earnings management in Egypt. Using a sample of 80 non-financial Egyptian companies listed on the Egyptian Stock Exchange for the eight financial years from 2012 to 2019. Audit Committee characteristics are represented by Audit Committee independence, Audit Committee size, the frequency of Audit Committee meetings, Audit Committee expertise, and Audit committee gender. Discretionary accruals are used as a proxy for Earnings Management. Panel data regression was used in the archival modeling study. Using a multiple regression model to test the relationship among the variables, the results provide evidence that Audit Committee Size, Audit Committee Expertise and Audit Committee Gender have a significant negative relationship on Earnings Management. Also, there is no significant relationship between Audit Committee Meetings and Earnings Management. Audit Committee Independence has a positive and significant relationship with Earnings Management. This study offers numerous recommendations to the regulatory authorities in Egypt on how to improve and strengthen the internal governance systems of businesses, particularly the Audit Committee.

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Section: Dependent Variablementioning

confidence: 99%

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confidence: 99%

The Relation between Audit Committee Characteristics and Earnings Management: Evidence from Firms Listed on the Egyptian Stock Market

Galal¹,

Soliman²,

Bekheit³

2022

AJIBM

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“…Given the scale of the potential negative consequences of earnings management for company's shareholders, this task also has significant practical importance. However, there is little research proposing specific models for forecasting the level of earnings manipulation of a company, with papers only starting to appear (e.g., Tsai & Chiou, 2009;Etemadi & Moghadam, 2014).…”

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confidence: 99%

Forecasting the level of earnings management of Russian and Chinese companies

Loukianova¹,

Nikulin²,

Zinchenko³

2017

Investment Management and Financial Innovations

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The purpose of the current paper is to elaborate a model to forecast a particular type of earnings management by companies: upward earnings management, downward earnings management or the absence of significant manipulation. The sample analyzed in the current paper comprises 664 Russian and 2,380 Chinese public companies for the period 2009-2014. The forecast was made for 2014 based on annual accounting data for [2009][2010][2011][2012][2013]. Regression analysis, as well as Classification and Regression Tree modelling (CART), were used. The data forecast for 2014 was compared with actual data for that year, and the accuracy of the forecasting model was assessed. The paper outlines the main conditions under which a particular type of earnings manipulation is expected to take place in a company in the accounting period following the current one. It is shown that the main factor influencing the company's level of earnings manipulation of the next accounting period for both Russian and Chinese companies is the debt ratio calculated as the ratio of total liabilities to total assets. The other important factors are: the company size, return on equity, earnings persistence, the level of earnings manipulation in the current period and stock emission.

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The Competition between Regression and Artificial Neural Network Models in Earning Management Prediction

Cited by 2 publications

References 0 publications

The Relation between Audit Committee Characteristics and Earnings Management: Evidence from Firms Listed on the Egyptian Stock Market

The Relation between Audit Committee Characteristics and Earnings Management: Evidence from Firms Listed on the Egyptian Stock Market

Forecasting the level of earnings management of Russian and Chinese companies

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