Project Sherlock

Finance & Investing · Accounting & Financial Statements

Earnings Quality

A topic within Accounting & Financial Statements, itself one of 11 topics in that field and part of Finance & Investing.

Reading on Earnings Quality

2

2 works

Paper1999

A Review of the Earnings Management Literature and Its Implications for Standard Setting

Paul M. Healy & James M. Wahlen

Surveys the evidence on when and why managers exercise discretion over reported earnings, and argues standard setters should worry less about whether judgement is used at all and more about whether it is used to mislead.

Paper2002

The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors

Patricia M. Dechow & Ilia D. Dichev

Proposes measuring earnings quality directly, by how well a period's accruals map onto the cash flows that eventually realise them, and shows firms with larger estimation errors in their accruals have less persistent earnings.

Other topics in Accounting & Financial Statements