Purpose - This study examines the earnings quality of private-subsidiary firms using a large sample data from India. Design/methodology/approach - The impact of parent-subsidiary relationship on earnings quality is examined using two common proxies. Findings are robust to alternative research...

This paper explores the intricate relationship between profit rates, exchange rates, and terms of trade in the Brazilian economy from 2000 to 2023. Building on Weisskopf's (1979) decomposition of the profit rate, we demonstrate how exchange rates and terms of trade affect profit share, the...

Restricted stock units (RSUs) are a key component of executive compensation schemes, aligning executive incentives with the long-term goals of the company and compensating for the limitations of traditional stock options. This study empirically analyzes the impact of RSUs on corporate...

Purpose This study aims to explore the asymmetric effects of macroeconomic factors on the profitability of large-cap companies in an emerging country like Colombia, using the Morgan Stanley Capital International (MSCI) Colombia index as the basis. Design/methodology/approach We employ a...

We extend Trade-Off Theory (TOT) by assuming that EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), rather than EBIT (Earnings Before Interest and Taxes), follows a Geometric Brownian Motion (GBM), and we thus consider the role of tax depreciation allowances (TDA) in...

Background: This paper provides an overview of the literature in earnings management (EM), focusing on the last ten years of literature dealing with companies. Objectives: The paper's primary purpose is to determine whether there is still room for research in a field with extensive literature....

There have been several attempts to measure social capital—the value inhering in relationships—at an aggregate level, but researchers lack comprehensive individual-level social capital measures. Using a combination of direct linkage and imputation across several nationally representative...

There have been several attempts to measure social capital-the value inhering in relationships-at an aggregate level, but researchers lack comprehensive individual-level social capital measures. Using a combination of direct linkage and imputation across several nationally representative...

We investigate how the accounting treatment of intangible assets on managers' likelihood of issuing voluntary earnings guidance (MEF). We find that unrecognized intangibles (immediately expensed) are negatively associated with MEF issuance, while recognized intangibles (capitalized) show a...

Purpose: This research evaluates two views of the effect of income smoothing on stock overvaluation. There is a view that income smoothing impairs the usefulness of profit information by distorting the economic substance of a company. While another view is income smoothing can serve as a means...

Suppressing corporate financialization exacerbated by rising labor costs is an important micro-level issue for revitalizing the manufacturing industry. This research investigates the interaction mechanism among labor costs and financialization, using panel data of Chinese listed companies from...

When trading in the call and put contracts of option chains, the portfolios of strikes must be selected. The trader must also decide whether to take long or short positions at the selected strikes. Dynamic strategies for making these decisions are discussed in this paper. On any day, the...

A common justification for shareholder primacy is that shareholders' financial interests give them an incentive to pursue projects that increase social welfare. This alignment of interests occurs because shareholders hold a residual claim on firm value: Because they receive only what remains...

Corruption within corporate entities continues to be a relatively overlooked yet significant issue to date. This study seeks to investigate the impact of corruption on the quality of earnings. The sample comprises 846 firm-years listed on the Indonesian Stock Exchange. Earnings quality...

The main source of financing is bank loans for Portuguese small and medium-sized entities (SMEs), which implies several constraints to obtaining additional funds. Relying on the argument of Positive Accounting Theory (PAT) that accounting choices are not neutral and on Agency Theory that...