Accounting earnings

Accounting earnings

Earnings of a firm as reported on its income statement.

Accounting Earnings

A company's earnings as reported on its annual report or other statement. It may be calculated by any method approved in the Generally Accepted Accounting Principles.
References in periodicals archive ?
However, Lev (1989) claims that studies have shown a weakening in the association between return and accounting earnings caused by the arbitrariness of the accounting measures and by earnings manipulations by managers, thus affecting accounting information quality.
Because the stock market tends to overvalue accounting earnings, there is a need to validate the quality of earnings that companies report by looking at its cash flows.
This prudence treatment supports the findings of Ball and Shivakumar (2005) that accounting conservatism is commonly considered an indicator of earnings quality or at least a desirable property of accounting earnings. Our results negatively correlate with the findings of Frankel and Li (2004) that financial reporting reduces information asymmetry by disclosing relevant and timely information and Barth et al.
Internal governance mechanisms and value relevance of accounting earnings: an empirical study in the French context.
Earnings management is the judgmental adjustments/alteration in firm's reported accounting earnings by managers in order to upsurge firm performance temporarily (Cornett et al., 2009; Garcia-Meca and Sanchez-Ballesta, 2009).
(2017), the higher the management incentive to "manage" corporate financial reports, the lower the credibility of accounting earnings information contained in those reports.
Defond and Hung (2003) assess similarities and differences among industry firms, they found that different industries possess differing amounts of capital intensity and risk, thereby affecting cash flow and accounting earnings. Industry membership, among other things, has been found to affect auditor choice (Carcello & Neal 2003), analysts' forecasts (Sinha, Brown, & Das 1997), corporate mergers (Stunda, 2017), and defined benefit plans (Towers & Watson 2016).
Basu (1997) first operationalize the definition of accounting conservatism as an asymmetrically greater reflection of "bad news" over "good news" in accounting earnings recognition.
b) infer about the influence of legal origins and financial standards on accounting earnings opacity;
206) state that "a crucial aspect of research on the impact of accounting earnings on the capital market is the determination of the information content of earnings data." Accounting information content is supported by a number of attributes, including persistence, accruals quality, and value relevance; quality information is expected to have greater information content and, therefore, to better support the decisions of accounting information users.
However, sales revenues and accounting earnings can be easily manipulated by the management (Dechow et al., 1995).
As both revenues and costs are recognized in accordance with accrual accounting, earnings appear as well on the right side of the balance sheet and the NOWC as a difference between revenues, in the form of accounts receivable, and costs, in the form of accounts payable, equals accounting earnings. When [T.sup.AR] = [T.sup.AP] operating cash inflow and operating cash outflow appear on the same day and on this day the cash at hand equals accounting earnings.