Idiosyncratic Return Volatility, Earnings Quality and CEO Equity-Based Compensation

2008 ◽  
Author(s):  
Pervaiz Alam ◽  
Min Liu
Keyword(s):  
Earnings Quality ◽  
Return Volatility

The association between earnings quality and firm-specific return volatility

2016 ◽  
Vol 15 (3) ◽  
pp. 294-316 ◽  
Author(s):  
Ranjan Kumar Mitra
Keyword(s):  
Stock Prices ◽  
Research Study ◽  
Earnings Quality ◽  
Systematic Risk ◽  
Idiosyncratic Volatility ◽  
Specific Information ◽  
Return Volatility ◽  
Content Type ◽  
Economic Fundamentals ◽  
Highly Correlated

Purpose This paper aims to examine the association between earnings quality and firm-specific return volatility for a large sample of Japanese manufacturing firms. Design/methodology/approach This archival research uses idiosyncratic volatility and asynchronicity as two analogous proxies for firm-specific return volatility to investigate its association with earnings quality. Findings Using idiosyncratic volatility and asynchronicity as two comparable proxies for firm-specific return volatility, the author finds contradictory results. The author relates this contradiction to another debate in accounting and finance literature about whether firm-specific return volatility captures firm-specific information or noise. Initially, the author obtains conflicting results because the systematic risk, one of the components of asynchronicity, is highly correlated with earnings quality. After controlling for the systematic risk, the author finds that higher earnings quality is associated with lower firm-specific return volatility. This finding is consistent with the noise-based explanation of firm-specific return volatility. The author also separates earnings quality into an innate component driven by economic fundamentals and a discretionary component driven by managerial discretionary behavior and finds that both components have significant impact on firm-specific return volatility but the innate component has significantly stronger effect than the discretionary component. Originality/value This is the first research study presenting evidence on the association between earnings quality and firm-specific return volatility in the Japanese setting. The findings of this paper are likely to contribute to the resolution of a well-known debate on whether firm-specific return volatility captures more firm-specific information being impounded in stock prices or noise in stock prices.

The Effects of Accounting Earnings Quality on Size of Stock Repurchases and Future Operating Performance

2018 ◽  
Vol 43 (6) ◽  
pp. 147-185
Author(s):  
Kyung Soon Kim ◽  
Seong In Moon ◽  
Ji Su Kang ◽  
Seon Min Bae
Keyword(s):  
Earnings Quality ◽  
Operating Performance ◽  
Stock Repurchases ◽  
Accounting Earnings

Large Foreign Ownership and Firm-Level Stock Return Volatility in Emerging Markets

CFA Digest ◽  
2012 ◽  
Vol 42 (2) ◽  
pp. 56-58
Author(s):  
Johann U. de Villiers
Keyword(s):  
Emerging Markets ◽  
Stock Return ◽  
Foreign Ownership ◽  
Return Volatility ◽  
Firm Level ◽  
Stock Return Volatility

Pengaruh Profitabilitas, Umur Perusahaan, Ukuran Perusahaan, Kualitas Audit, Dan Struktur Modal Terhadap Kualitas Laba

2014 ◽  
Vol 6 (1) ◽  
pp. 27-42
Author(s):  
Keshia Anjelica ◽  
Albertus Fani Prasetyawan
Keyword(s):  
Firm Size ◽  
Stock Prices ◽  
Audit Quality ◽  
Earnings Quality ◽  
Secondary Data ◽  
Financial Statements ◽  
Firm Age ◽  
Construction Companies ◽  
Auditor Switching ◽  
Testing Method

The objective of this research is to examine the effect of profitability, firm age, firm size, audit quality, and leverage both partially and simultaneously towards earnings quality. The testing method used in this research is multiple regressions. The objects of this study are property, real estate and construction companies which were listed at Kompas 100 for the period 2010-2012. The samples are 15 companies determined based on purposive sampling. The data used in this study are secondary data such as financial statements and historical stock prices. The results of this study are (1) firm age has a negative significant effect on earnings quality, meanwhile firm size has a positive significant effect on earnings quality (2) profitability, audit quality, and leverage partially have an insignificant effect towards earnings quality (3) profitability, firm age, firm size, audit quality, and leverage simultaneously have a significant effect towards voluntary auditor switching. Keywords: ERC, earnings quality, profitability, firm age, firm size, audit quality, leverage.

PENGARUH EARNINGS MANAGEMENT TERHADAP EARNINGS QUALITY

2010 ◽  
Author(s):  
Pupun Tri Wahyuni ◽  
Resti Yulistia Muslim
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Manufacturing Companies ◽  
Financial Report ◽  
Earnings Response Coefficient ◽  
Discretionary Accrual ◽  
Response Coefficient ◽  
Earnings Response

This research objective is to axamine empirically the influence of earnings management on earnings quality. The study motivated by the controversy of previous study about earnings management and earnings quality. Earnings management was measured by Discretionary Accrual and earnings quality was measured by Earnings Response Coefficient (ERC). The units were 128 (16x8) Quartal financial report in manufacturing companies listed in the Jakarta Stock Exchange, started from the year 2005 up to 2006. The data was collected using purposive sampling method. Statistical method used to test the hypotheses was multiple regressions. The result of the research showed that: the influence of earnings management on earnings quality was negative, sig 0.049. It means that the lower earnings management will be followed by higher earnings quality. This study supported the result of Fetham and Pae (2000), Nelson et al. (2000), Scott (2000), Lobo and Zhou (2001), also Teixeira (2002), Pudjiastuti (2006). 

The Uncertainty of Non-Accounting Information in Analysts' Forecasts and Stock Return Volatility

2008 ◽  
Author(s):  
Yaowen Shan ◽  
Stephen L. Taylor ◽  
Terry Walter
Keyword(s):  
Stock Return ◽  
Accounting Information ◽  
Return Volatility ◽  
Stock Return Volatility

Precarious Politics and Return Volatility

2011 ◽  
Author(s):  
Maria K. Boutchkova ◽  
Hitesh Doshi ◽  
Art Durnev ◽  
Alexander Molchanov
Keyword(s):  
Return Volatility

The Effects of KonTraG on Earnings Quality in Germany

2009 ◽  
Author(s):  
Hannes Duecker
Keyword(s):  
Earnings Quality
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