The transition from cash to accrual accounting is said to change a government's perception of its budget quite fundamentally. Although an exorbitant number of governments have reformed the mode of accounting at high costs in past years, reliable empirical evidence of consequences on their...

Managers are often employed many alternatives for earnings management following their objectives or the financial reporting objectives; the commonly used are the accrual-based and cash-based earnings management. The literature reveals that managers adopt the two strategies in different ways,...

Many governments have replaced traditional cash-based accounting with some form of accrual-based accounting system. However, empirical evidence on the effects of the public accounting system on fiscal policy is scarce. Following rules by the federal states, municipalities in Germany have adopted...

Many governments have replaced traditional cash-based accounting with some form of accrual-based accounting system. However, empirical evidence on the effects of the public accounting system on fiscal policy is scarce. Following rules by the federal states, municipalities in Germany have adopted...

This study explores the relationship between company earnings management and the relative value relevance of book value and earnings. The differential effect on the value relevance of earnings management (EM) from 2014 to 2018 for all firms listed on the Saudi Stock Exchange (Tadawul) is...

Because stock liquidity should improve managers’ access to external information, we examine whether managers of firms with higher stock liquidity form more accurate accrual estimates. Consistent with our expectations, we find that accrual estimation errors of firms with more liquid stocks are...

Corporate income tax (CIT), as an important economic instrument in most jurisdictions, constitutes a significant portion of financial costs in business operations. It is known that the structure of tax function, accounting method and loss carryover policy have significant impacts on a firm's...

We document that historical patterns of accruals seasonality predict future stock returns. Firms with historically larger accruals in a given quarter of the year earn lower stock returns when those accruals are expected to be announced. The accruals seasonality spread is significant only in the...

The transition from cash to accrual accounting is said to change a government's perception of its budget quite fundamentally. Although an exorbitant number of governments have reformed the mode of accounting at high costs in past years, reliable empirical evidence of consequences on their...

A large body of empirical research in accounting investigates the causes and consequences of accruals quality, reaching numerous influential conclusions. Yet little work has been done to systematically evaluate the validity of the underlying measures of accruals quality. We evaluate these...

There are several explanations for why accruals persist into earnings at lower rates than cash flows. These include that accruals contain estimation error, diminishing returns to investment, and product-markets shocks. We predict that the mixed attribute GAAP measurement model along with the...

We define accrual duration as the length of time between an accrual and its associated cash flow. Accrual duration and accrual discretion are inextricably linked by the fundamentals of the accrual process because one side of an accrual pair is pinned down by the sign and magnitude of its...

Considerable research has been devoted to the evaluation of accrual accounting, with an accrual-cash flow relation at the center of the investigation. However, much of the research is based on misconceptions. First, accruals are defined as changes in balance sheet items, but these are not the...

Previous research has shown that costs exhibit a sticky behavior: Costs increases when sales rise are larger than cost decreases when sales drop. Given that the traditional accrual models rely on the assumption of costs responding equally to sales increases and to sales decreases, the sticky...

Recent work shows that the role of accrual accounting in mitigating the timing differences between cash flows and operating performance has been disappearing over time (Bushman, Lerman, and Zhang 2016). We argue that even though there is noise in the accrual accounting process, sophisticated...

This paper aims to present the effect of life cycle on financial reporting quality (FRQ). Discretionary accruals, small profit, and audit aggressiveness were used to test the FRQ from different approaches for Borsa Istanbul-listed companies between 2008 and 2017. The sample comprises 1,645...

This paper investigates accrual earnings management (AEM) and real earnings management (REM) in family businesses (FB) in Saudi Arabia. Current literature indicates that minority rights are confiscated by the controlling shareholders in a business environment weak to protect investors. Based on...

Purpose: This research aimed to analyse the effect of top management support, training and communication on the implementation of accrual accounting. Design/methodology/approach: The hypotheses of the study were tested using the survey data from 63 working unit in Cianjur Regency. The instrument...

Purpose: Beginning from the assumption that accrual accounting is useful in ensuring the high performance of management systems, this article investigates explanatory factors concerning the level of accrual accounting adoption in municipalities on the Indonesia island of Java....

We provide an applied introduction to Bayesian estimation methods for empirical accounting research. To showcase the methods, we compare and contrast the estimation of accruals models via a Bayesian approach with the literature's standard approach. The standard approach takes a given model of...

The transition from cash to accrual accounting is said to change a government's perception of its budget quite fundamentally. Although an exorbitant number of governments have reformed the mode of accounting at high costs in past years, reliable empirical evidence of consequences on their...

Public sector entities’ aim is to provide services to their citizens. They operate in a specific environment and thus, their accounting system differs from the one used by business enterprises, and its development moves towards greater achievement of the international financial communication,...

Many governments have replaced traditional cash-based accounting with some form of accrual-based accounting system. However, empirical evidence on the effects of the public accounting system on fiscal policy is scarce. Following rules by the federal states, municipalities in Germany have adopted...

Many governments have replaced traditional cash-based accounting with some form of accrual-based accounting system. However, empirical evidence on the effects of the public accounting system on fiscal policy is scarce. Following rules by the federal states, municipalities in Germany have adopted...

Corporate choice is expected to reflect rational behavior and yet there is much anecdotal evidence suggesting the opposite. Often the accounting system plays a major part in such stories. Aligning incentives has always been one of the main concerns of the accounting system. Accounting control...

This study examines the impact of accounting comparability on financial reporting quality and the extent to which financial statement users understand the implications of firms' accruals. We predict that comparability improves the information environment, which not only enhances the ability of...

Sloan (1996), Richardson et al. (2005, 2006) examine how firms' accruals relate to subsequent financial performance. They identify a negative correlation and attribute it to accruals lack of reliability. This paper considers the issue from a different starting point: we forecast sales and...