The Earnings Quality and Stock Returns of Listed Manufacturing Companies in Colombo Stock Exchange

Wijesinghe, M. R. P.

doi:10.15224/978-1-63248-116-0-45

Cited by 3 publications

(3 citation statements)

References 4 publications

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“…Additionally, Lee (2019) added that non-operating earnings quality affects the market returns of Taiwan's companies. However, Wijesinghea and Kehelwalatennab (2017) found no effect of earnings quality on the shares returns of manufacturing companies.…”

Section: Literature Review and Hypothesismentioning

confidence: 87%

Does Earnings Quality Affect Companies’ Performance? New Evidence from the Jordanian Market

Saleh¹,

Afifa²,

Alsufy³

2020

JAFEB

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This study aims to investigate the importance of earnings quality as a determinant of companies' performance. It provides some empirical evidences from an emerging market, specifically from the Jordanian market. This study developed an econometric model for the effect of earnings quality on the companies' performance using empirical evidence. The study employs a panel data analysis method by using a sample of all Jordanian industrial public shareholding companies listed on Amman Stock Exchange (ASE) during 2010-2018. The results reveal that Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS) as proxies of company's performance are affected by the earnings quality. This provides the importance of positive earnings quality that eventually influences the companies' performance. The results of this study suggest that the higher control level on the managers' behavior and its outcome will have an effect on earnings quality, and thus the company's performance increases. As well as, high relevance of accounting information will improve earnings quality, and thus earnings quality with the interaction factors of the company's environment work on improving performance. As a conclusion, this study can work as a reference to assist standard setters, security analysts, regulators and other accounting-information users in appraising relation between the earnings quality and companies' performance.

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Section: Literature Review and Hypothesismentioning

confidence: 87%

Does Earnings Quality Affect Companies’ Performance? New Evidence from the Jordanian Market

Saleh¹,

Afifa²,

Alsufy³

2020

JAFEB

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“…However, developing countries like Sri Lanka, where there are still weak investors' right and legal protections issues related to REM continue to deserve research attention and empirical investigation. Furthermore, previous research on earning management only investigate the composition of the board of directors, the size of the board of directors, the financial competence of the board of directors, stock return, and ownership structure on AEM [17,22]. Therefore, we contribute to the existing literature in earnings management by focus on family and managerial ownership structure in real earnings management.…”

Section: Earnings Managementmentioning

confidence: 99%

How do Family and Managerial Ownership Structure Effect Real Earnings Management?

Siraji

Nazar

2021

AJEBA

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Despite several works on corporate governance examine the ownership structure on earnings management, the empirical research on Real Earnings Management (REM) is limited. Thus, the main purpose of the research is to examine the effect of family and managerial ownership on real earnings management of selected non-financial listed companies at Colombo Stock Exchange (CSE) in Sri Lanka. The researchers use quantitative approach to address this current issue, and the data were collected using a sample of 206 firms listed at the CSE during the highest market capitalization period from 2015/2016 to 2019/2020, and eliminated the companies listed in the industry of bank, finance and insurance because the companies are governing by rules and regulation. The study found that family and managerial ownership play a prominent role and negatively related with real earning management activity. The finding of the study contributes to knowledge in earnings management of agency theory literature in developing economies, and help the investors, supplier auditors and policy makers for their decision-making activities by detecting the real earning management in different ownership structure.

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“…There are many other reasons why and how managers manipulate, such as capital market pressure, managerial incentives, political connections, building credibility with the capital market, maintaining or increasing stock prices, improving the external reputation of the management team, to convey future growth prospects and unrealistic forecasting of revenues (Wijesinghe, & Kehelwalatenna, 2017). Earnings management is regarded as an inverse measure of the earnings quality by representing a deliberate intervention in the financial statements, negatively impacting the earnings quality (Baxter, & Cotter, 2009).…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Financial Performances on Earnings Quality of Serbian Hotels

Rupić¹,

Obradović²,

Rupić³

et al. 2020

International Thematic Monograph: Modern Management Tools and Economy of Tourism Sector in Present Era

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This study examines the effect of financial performances on earnings quality using a sample of Serbian hotels during the period 2015-2019. First, the authors build a multidimensional measure of earnings quality including attributes as the hotel’s going concerned, size, current liquidity, age, profitability, and leverage. Second, the authors examine variables that are potentially associated with earnings quality. The methodology includes descriptive statistics, univariate test, correlation matrix for the variables, multivariate regression, F-test. This paper presents managerial implications for professionals, users of financial statements, and academics.

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The Earnings Quality and Stock Returns of Listed Manufacturing Companies in Colombo Stock Exchange

Cited by 3 publications

References 4 publications

Does Earnings Quality Affect Companies’ Performance? New Evidence from the Jordanian Market

Does Earnings Quality Affect Companies’ Performance? New Evidence from the Jordanian Market

How do Family and Managerial Ownership Structure Effect Real Earnings Management?

The Effect of Financial Performances on Earnings Quality of Serbian Hotels

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