Discretionary accruals : the measurement error induced by conservatism

Detalhes bibliográficos
Autor(a) principal: Moreira, José A. C.
Data de Publicação: 2006
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/10001
Resumo: This paper discusses the sign of the expected measurement error in discretionary accruals (DAC) estimates when accrual models do not control for the asymmetric treatment of gains and losses underlying conservatism. I show that DAC in firms with "bad news" are expected to be understated (positive measurement error), while those in "good news" firms will be overstated (negative measurement error). Based on this original result, and using graphical analysis, I discuss an empirical illustration, which corroborates the expectations.
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spelling Discretionary accruals : the measurement error induced by conservatismaccrualsaccrual modelsearnings managementThis paper discusses the sign of the expected measurement error in discretionary accruals (DAC) estimates when accrual models do not control for the asymmetric treatment of gains and losses underlying conservatism. I show that DAC in firms with "bad news" are expected to be understated (positive measurement error), while those in "good news" firms will be overstated (negative measurement error). Based on this original result, and using graphical analysis, I discuss an empirical illustration, which corroborates the expectations.Instituto Superior de Economia e GestãoRepositório da Universidade de LisboaMoreira, José A. C.2015-11-02T15:16:35Z20062006-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/10001engMoreira, José A. C. (2006). "Discretionary accruals : the measurement error induced by conservatism". Portuguese Journal of Management Studies, XI(2):115-126info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:40:23Zoai:www.repository.utl.pt:10400.5/10001Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T16:56:33.015151Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Discretionary accruals : the measurement error induced by conservatism
title Discretionary accruals : the measurement error induced by conservatism
spellingShingle Discretionary accruals : the measurement error induced by conservatism
Moreira, José A. C.
accruals
accrual models
earnings management
title_short Discretionary accruals : the measurement error induced by conservatism
title_full Discretionary accruals : the measurement error induced by conservatism
title_fullStr Discretionary accruals : the measurement error induced by conservatism
title_full_unstemmed Discretionary accruals : the measurement error induced by conservatism
title_sort Discretionary accruals : the measurement error induced by conservatism
author Moreira, José A. C.
author_facet Moreira, José A. C.
author_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Moreira, José A. C.
dc.subject.por.fl_str_mv accruals
accrual models
earnings management
topic accruals
accrual models
earnings management
description This paper discusses the sign of the expected measurement error in discretionary accruals (DAC) estimates when accrual models do not control for the asymmetric treatment of gains and losses underlying conservatism. I show that DAC in firms with "bad news" are expected to be understated (positive measurement error), while those in "good news" firms will be overstated (negative measurement error). Based on this original result, and using graphical analysis, I discuss an empirical illustration, which corroborates the expectations.
publishDate 2006
dc.date.none.fl_str_mv 2006
2006-01-01T00:00:00Z
2015-11-02T15:16:35Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/10001
url http://hdl.handle.net/10400.5/10001
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Moreira, José A. C. (2006). "Discretionary accruals : the measurement error induced by conservatism". Portuguese Journal of Management Studies, XI(2):115-126
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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