What is more relevant? A comparison of cash flows indicators versus profit or loss from listed European companies

Albuquerque, Fábio; Velez, Ana Rita; Pinto, Vera

doi:10.1080/23311975.2023.2251214

Cogent Business & Management

2023

DOI: 10.1080/23311975.2023.2251214

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What is more relevant? A comparison of cash flows indicators versus profit or loss from listed European companies

Fábio Albuquerque,

Ana Rita Velez,

Vera Pinto

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2024

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Cited by 2 publications

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Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities

Ribeiro,

Albuquerque,

Gomes Dos Santos

2024

Cogent Business & Management

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Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities

Ribeiro,

Albuquerque,

Gomes Dos Santos

2024

Cogent Business & Management

View full text Add to dashboard Cite

Exploring the Influence of Earnings Management on the Value Relevance of Financial Statements: Evidence from the Bucharest Stock Exchange

Burlacu,

Robu,

Munteanu

2024

IJFS

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Although financial statements are extremely important to investors in decision-making processes, their reliability can be affected by earnings management (EM) practices, which involve manipulating financial reports in order to achieve managerial benefits. This study explores the relationship between earnings management and firm valuation, based on accounting information’s predictive value, specifically investigating how EM influences the value relevance (VR) of earnings on share price. The research focuses on a sample of audited companies listed on the Bucharest Stock Exchange (BSE) between 2019 and 2021, comprising 62 entities. Using regression analysis, we explored the importance of accounting information for investors following Ohlson’s research and examined the relationship between EM and VR based on Jones’s model. The findings indicate that earnings significantly impact stock prices, highlighting their value relevance in the Romanian stock market. However, the practice of earnings management reduces the value relevance of earnings because it decreases the reliability of the accounting information. The main contribution of this analysis is to provide a fresh perspective on earnings management (EM) within the BVB framework by highlighting its pivotal role in shaping the motivation and behavior of corporate managers.

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What is more relevant? A comparison of cash flows indicators versus profit or loss from listed European companies

Cited by 2 publications

References 64 publications

Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities

Are the separate financial accounts also relevant? Assessing those accounts reported by listed European entities

Exploring the Influence of Earnings Management on the Value Relevance of Financial Statements: Evidence from the Bucharest Stock Exchange

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