scholarly journals Earnings Smoothing as Information Signaling or Garbling: A Review of Literature

2018 ◽  
Vol 10 (1) ◽  
pp. 131
Author(s):  
Nor Afifah Shabani ◽  
Saudah Sofian
Keyword(s):  
Private Information ◽  
Firm Value ◽  
Future Research ◽  
Journal Articles ◽  
Actual Performance ◽  
Future Earnings ◽  
Information Signaling ◽  
Earnings Smoothing ◽  
Reported Earnings

Earnings smoothing, which refers to the action of managers managing earnings to reduce fluctuations of reported earnings, is a special type of earnings management because while earnings smoothing may be used to distort shareholders and creditors’ view of corporate actual performance, it may also serve as a tool to communicate corporate private information of future earnings to the aforementioned stakeholders. Hence, it comes to no surprise when prior literatures reveal that the studies on the role of earnings smoothing are divided into two streams: as information signaling and information garbling. This paper aims to review prior literatures, specifically on the role of earnings smoothing either as information signaling or garbling based on four themes: firm value, financing need, compensation contract and outsiders’ intervention. This paper reviews journal articles gathered from Web of Science database. Based on the shortcomings of prior literatures, this paper highlights avenue for future research.

The Internationalization of Family Firms

2013 ◽  
Vol 27 (2) ◽  
pp. 103-125 ◽  
Author(s):  
Thilo J. Pukall ◽  
Andrea Calabrò
Keyword(s):  
Theoretical Model ◽  
Family Firms ◽  
Future Research ◽  
Risk Attitudes ◽  
Journal Articles ◽  
Suggested Model ◽  
Socioemotional Wealth ◽  
Uppsala Model ◽  
Research Themes

This article systematically reviews and critically examines 72 journal articles published (from 1980 to 2012) on the internationalization of family firms. Stemming from existing literature, core aspects and main gaps are identified. We aim to overcome the inconclusiveness of findings of previous research by offering an integrative theoretical model integrating the concept of socioemotional wealth with the revised Uppsala model. Our framework helps understand behaviors of internationalizing family firms by focusing on when and how they internationalize, especially related to risk attitudes, the role of knowledge and networks. Ultimately, we provide future research themes flowing from our suggested model.

Reciprocal Teaching: A Review of the Research

1994 ◽  
Vol 64 (4) ◽  
pp. 479-530 ◽  
Author(s):  
Barak Rosenshine ◽  
Carla Meister
Keyword(s):  
Standardized Tests ◽  
Effect Size ◽  
Cognitive Strategies ◽  
Reciprocal Teaching ◽  
Future Research ◽  
Journal Articles ◽  
Unpublished Studies ◽  
Comprehension Tests

Reciprocal teaching is an instructional procedure designed to teach students cognitive strategies that might lead to improved reading comprehension. The learning of cognitive strategies such as summarization, question generation, clarification, and prediction is supported through dialogue between teacher and students as they attempt to gain meaning from text. This article is a review of sixteen studies on reciprocal teaching, which include published studies found in journal articles and unpublished studies indexed in Dissertation Abstracts International. All the studies included in this review were quantitative in methodology. When standardized tests were used to assess comprehension, the median effect size, favoring reciprocal teaching, was .32. When experimenter-developed comprehension tests were used, the median effect size was .88. We also discuss the role of cognitive strategies in enhancing comprehension, the strategies that were most helpful, instructional approaches for teaching cognitive strategies, the quality of the dialogue during reciprocal teaching, and suggestions for future research and practice.

scholarly journals Breaking the Resource Curse: The Role of Natural Resource Funds

2021 ◽  
Vol 4 (2) ◽  
pp. 99-109
Author(s):  
Isaiah Adeleke ◽  
Umaru Mustapha Zubairu
Keyword(s):  
Natural Resource ◽  
Management Strategy ◽  
Resource Curse ◽  
Future Research ◽  
Effective Management ◽  
Journal Articles ◽  
Special Purpose Vehicle ◽  
Resource Governance ◽  
Effective Role

Studies have shown that the paradox of “the more resource-rich the poorer” otherwise known as “resource curse” has been prevalent in many countries endowed with natural resources. To mitigate this trend, a revenue management strategy called Natural Resource Funds (NRFs) - a government owned special-purpose vehicle to ensure effective management of the country’s natural wealth was embraced in some nations. This paper critically reviewed the roles of NRFs in breaking the resource curse. The Systematic Quantitative Assessment Technique (SQAT) was adopted in identifying and reviewing sixty-seven (67) peer reviewed journal articles that had researched on NRFs in the last decade. The findings were that NRFs have played an effective role in some advanced countries (Chile and China), while they have failed, especially in Africa, Middle East and Latin America due to poor institutional framework and governance. A globally set code of resource governance was recommended to strengthen the role of NRFs and enhance their effectiveness. Resource revenue maximization other than revenue utilization would be a good area for future research.

Meeting Individual Analyst Expectations

2014 ◽  
Vol 89 (6) ◽  
pp. 2203-2231 ◽  
Author(s):  
Marcus P. Kirk ◽  
David A. Reppenhagen ◽  
Jennifer Wu Tucker
Keyword(s):  
Private Information ◽  
Explanatory Power ◽  
Analyst Forecasts ◽  
Data Availability ◽  
Analyst Forecast ◽  
Analyst Expectations ◽  
Management Literature ◽  
Two Measures ◽  
Reported Earnings

ABSTRACT The expectations management literature has so far focused on firms meeting the analyst consensus forecast—the expectations of analysts as a group—at earnings announcements. In this study we argue that investors may use individual analyst forecasts as additional benchmarks in evaluating reported earnings because the consensus forecast underutilizes private information contained in individual analyst forecasts. We predict that measures reflecting such private information have incremental explanatory power over the consensus forecast for the market's reaction to earnings news. We find results consistent with this prediction by examining two measures: (1) the percentage of individual forecasts met and (2) meeting the key analyst forecast. We extend the literature by documenting the role of individual analyst forecasts in investors' evaluations of reported earnings. JEL Classifications: G10; G11; G17; G14; G24. Data Availability: Data are publicly available from the sources identified in the paper.

Under pressure: A systematic review of stress and its impact among graduate students

2020 ◽  
Author(s):  
Seongkyung Cho ◽  
Christopher S Hayter
Keyword(s):  
Systematic Review ◽  
Graduate Students ◽  
Social Development ◽  
Science Policy ◽  
Future Research ◽  
Journal Articles ◽  
Design And Implementation ◽  
Effective Interventions ◽  
Research And Policy

Abstract Despite increasing interest related to the role of graduate students in economic and social development, science policy scholars have overlooked the role of stress and its broader impact on the conduct of science. To motivate future empirical research, this study systematically reviews the literature on antecedents and impact of stress among graduate students, examining thirty-four journal articles published from 2000 to 2018. We find that not only do multiple definitions of stress exist, but also that scholars have neglected broader theoretical implications and comparative dimensions of the phenomenon. While this outcome can be explained partially by the paucity of different national and disciplinary perspectives, these factors nonetheless hinder the design and implementation of effective interventions that can help graduate students reduce and manage stress levels and thus improve the conduct of science. We introduce a conceptual model of our findings and discuss implications for future research and policy.

Disclosures of Insider Purchases and the Valuation Implications of Past Earnings Signals

2011 ◽  
Vol 87 (1) ◽  
pp. 313-342 ◽  
Author(s):  
David Veenman
Keyword(s):  
Firm Value ◽  
Securities And Exchange Commission ◽  
Data Availability ◽  
Information Uncertainty ◽  
Market Reactions ◽  
Future Earnings ◽  
Earnings Information ◽  
Reported Earnings

ABSTRACT This study examines whether disclosures of insider equity purchases on Securities and Exchange Commission (SEC) Form 4 resolve uncertainty regarding the valuation implications of reported earnings. Defining information uncertainty as ambiguity about firm value arising from low earnings precision, I predict and find that insider purchase filings trigger more positive market reactions in firms with greater information uncertainty (lower quality accruals). After controlling for future earnings changes, I further find that market reactions to purchase filings are predictably associated with prior earnings changes. The strength of this effect is increasing in the magnitude of insider purchases, as well as the level of information uncertainty. Overall, these findings suggest that, in addition to signaling future earnings information, Form 4 purchase filings help investors learn about the valuation implications of past earnings signals. Data Availability: All data are available from public sources.

Earnings Management and Ownership Retention for Initial Public Offering Firms: Theory and Evidence

2007 ◽  
Vol 82 (1) ◽  
pp. 27-64 ◽  
Author(s):  
Qintao Fan
Keyword(s):  
Earnings Management ◽  
Initial Public Offering ◽  
Private Information ◽  
Comparative Statics ◽  
Future Earnings ◽  
Ipo Pricing ◽  
Public Offering ◽  
Equilibrium Market ◽  
Reported Earnings ◽  
Empirical Implications

This paper investigates, both theoretically and empirically, how earnings management and ownership retention interact, and how these two jointly affect the equilibrium market valuation of IPO firms in the presence of information asymmetry. Analytically, this paper extends the univariate signaling framework of Leland and Pyle (1977) and derives an efficient signaling equilibrium in which both reported earnings and ownership retention are endogenously chosen to convey the IPO issuer's private information. It is shown that even though either ownership retention or reported earnings communicates the issuer's type to the market unambiguously, the issuer will strategically employ both signals to achieve separation from potential lower quality imitators at minimal cost. Comparative statics analysis shows that the trade-off between the two signals depends critically on the uncertainty over future earnings. The theoretical analysis generates several empirical implications regarding market efficiency, IPO pricing, and the strategic choice of earnings management. Through systematic econometric analysis, I confirm the major predictions of the model.

scholarly journals Impact of CSR on Firm Value: The Moderating Role of Corporate Governance

2020 ◽  
Vol 4 (2) ◽  
pp. 145
Author(s):  
Affaf Asghar Butt ◽  
Aamer Shahzad ◽  
Jamshaid Ahmad
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Exchange ◽  
Annual Reports ◽  
Future Research ◽  
Financial Firms ◽  
Developed Markets ◽  
Corporate Social ◽  
Moderating Role

This study aims to investigate whether the corporate governance (CG) moderates the link between corporate social responsibility (CSR) and firm value (FV). For this purpose, anatomization was conducted by extracting data from the published annual reports of non-financial firms listed on the Pakistan Stock Exchange. Correlation, regression, and moderation analyses were conducted to obtain the statistical outcomes. The results showed a significant direct relationship between CSR and firm performance. Additionally, it was found that the interactivity between CSR and FV weakened when CG was included as a moderator. The results of this study could be used by stakeholders to make economically sound decisions since it provides complete guidance regarding how to engage in productive CSR activities. Moreover, this study contributes to future research by examining the association between CSR and FV using CG as a moderator, in a market where, as in other developing markets, this relationship has not been the focus of research. Apart from its theoretical contributions, this study explores the role of CG as moderator, in line with research conducted in under-developed markets, which may be considered a significant contribution. 

A systematic review on the internationalization of Chinese SMEs: Thematic expansion, new impulses and potential avenues for future research

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabian Hänle ◽  
Bart Cambré ◽  
Stefanie Weil
Keyword(s):  
Institutional Environment ◽  
Future Research ◽  
Journal Articles ◽  
Firm Level ◽  
Content Type ◽  
Institutional Contexts ◽  
Research Questions ◽  
Review Study ◽  
Push And Pull

Purpose Supplementing an earlier review paper on the internationalization of Chinese small- and medium-sized enterprises (SMEs) (ICS) that covers the period 1991–2012, the purpose of this paper is to examine how research on this topic has thematically expanded in recent years. Specifically, the authors aim to examine the literature between 2013 and 2020, highlight advancements and synthesize potential avenues for future research. Design/methodology/approach Based on the systematic literature review method (Denyer and Tranfield, 2009; Kraus et al., 2020), the authors considered more than 5,700 peer-reviewed journal articles, of which 107 were included in the narrative synthesis. Findings Research on the ICS has become more widespread and mature in the period since 2013. First, there are more papers investigating firm-level characteristics and sources of internal capabilities. Second, the state of knowledge regarding social networks and institutional contexts in the internationalization process has increased. Consequently, new knowledge exists regarding push and pull patterns and the role China’s institutional environment is playing. Third, growing interest can be noted in studying entrepreneurship in the context of Chinese SMEs’ global expansion. Additionally, the paper exposes promising areas for future research and suggests more than 20 potential research questions. Originality/value This review in the growing debate on the ICS is the first of its kind that consciously drives the work of a previous review study forward. This enables tracking the progress of research (“mapping of the field”) and identifying important avenues for future research that can further advance the debate. The comprehensive review also discovered one relatively new variable – the role of Chinese returnee entrepreneurs – which shows the significant influence on SME internationalization and attracts growing scholarly attention.

Reported Earnings Quality Under Conservative Accounting and Auditing

2005 ◽  
Vol 20 (3) ◽  
pp. 229-256 ◽  
Author(s):  
Pradyot K. Sen
Keyword(s):  
Firm Value ◽  
Informational Efficiency ◽  
High Quality ◽  
Cost Estimates ◽  
Future Earnings ◽  
Current Period ◽  
Conservative Accounting ◽  
Reported Earnings ◽  
Investment Firm ◽  
Investment Growth

While conservatism may lead to a reduction of the current period's income, a consistent use of conservative accounting builds a hidden reserve that can inflate future earnings when investment growth slows down. For the same reason, reported earnings may be of a lower quality in terms of predictability of future cash flow when investments are growing. Managers of a growing firm, therefore, must choose to report a conservative but lower quality number or to undo the effects of conservatism by less conservative current-period cost estimates to improve the quality of reported earnings. Such departure from conservatism in the current period may lead to a conflict with the auditor, which may affect firm value as well as the manager's own wealth. Managers of a steady-state investment firm, on the other hand, have an opportunity either to report conservative and high quality earnings or to slow down its investments and/or choose less conservative current period cost estimates to report higher earnings in order to effectively mimic the (high quality) report of the growing firm. In this environment, an increase in auditor's conservatism may improve the informational efficiency of the market by reducing the incentives of the nongrowing firms to mimic a growing firm's disclosure. An increase in incentives that are based on firm value tends to increase a growing firm manager's propensity to report higher quality earnings while increasing the nongrowing firm's manager's propensity to cut back investment. Thus, we are faced with a situation where improving incentives for reporting higher quality earnings may be associated with an incentive to reduce investments by some firms.

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