企业盈利质量分析中英文对照外文翻译文献

第第页企业盈利质量分析中英文对照外文翻译文献

企业盈利质量分析中英文对照外文翻译文献

企业盈利质量分析中英文对照外文翻译文献

(文档含英文原文和中文翻译)

原文：

Measuringthequalityofearnings

1.Introduction

Generallyacceptedaccountingprinciples(GAAP)offersomeflexibilityinpreparingthefinancialstatementsandgivethefinancialmanagerssomefreedomtoselectamongaccountingpoliciesandalternatives.Earningmanagementusestheflexibilityinfinancialreportingtoalterthefinancialresultsofthefirm(OrtegaandGrant,2023).

Inotherwords,earningsmanagementismanipulatingtheearningtoachievea

企业盈利质量分析中英文对照外文翻译文献

predeterminedtargetsetbythemanagement.Itisapurposefulinterventionintheexternalreportingprocesswiththeintentofobtainingsomeprivategain(Schipper,1989).

Levit(1998)definesearningmanagementasagrayareawheretheaccountingisbeingperverted;wheremanagersarecuttingcorners;and,whereearningsreportsreflectthedesiresofmanagementratherthantheunderlyingfinancialperformanceofthecompany.

Thepopularpresslistsseveralinstancesofcompaniesengaginginearningsmanagement.SensormaticElectronics,whichstampedshippingdatesandtimesonsoldmerchandise,stoppeditsclocksonthelastdayofaquarteruntilcustomershipmentsreacheditssalesgoal.CertainbusinessunitsofCendantCorporationinflatedrevenuesnearly$500millionjustpriortoamerger;subsequently,CendantrestatedrevenuesandagreedwiththeSECtochangerevenuerecognitionpractices.AOLrestatedearningsfor$385millioninimproperlydeferredmarketingexpenses.In1994,theWallStreetJournaldetailedthemanywaysinwhichGeneralElectricsmoothedearnings,includingthecarefultimingofcapitalgainsandtheuseofrestructuringchargesandreserves,inresponsetothearticle,GeneralElectricreportedlyreceivedcallsfromothercorporationsquestioningwhysuchcommonpracticeswere“front”news.

Earningmanagementoccurswhenmanagersusejudgmentinfinancialreportingandinstructuringtransactionstoalterfinancialreportstoeithermisleadsomestakeholdersabouttheunderlyingeconomicperformanceofthecompanyortoinfluencecontractualoutcomesthatdependonreportedaccountingnumbers(HealyandWhalen,1999).

MagrathandWeld(2023)indicatethatabusiveearningsmanagementandfraudulentpracticesbeginsbyengaginginearningsmanagementschemesdesignedprimarilyto“smooth”earningstomeetinternallyorexternallyimposedearningsforecastsandanalysts’expectations.

Evenifearningsmanagementdoesnotexplicitlyviolateaccountingrules,itisanethicallyquestionablepractice.Anorganizationthatmanagesitsearningssendsa

企业盈利质量分析中英文对照外文翻译文献

messagetoitsemployeesthatbendingthetruthisanacceptablepractice.Executiveswhopartakeofthispracticeriskcreatinganethicalclimateinwhichotherquestionableactivitiesmayoccur.Amanagerwhoasksthesalesstafftohelpsalesonedayforfeitsthemoralauthoritytocriticizequestionablesalestacticsanotherday.

Earningsmanagementcanalsobecomeaveryslipperyslope,whichrelativelyminoraccountinggimmicksbecomingmoreandmoreaggressiveuntiltheycreatematerialmisstatementsinthefinancialstatements(Clikeman,2023)

TheSecuritiesandExchangeCommission(SEC)issuedthreestaffaccountingbulletins(SAB)toprovideguidanceonsomeaccountingissuesinordertopreventtheinappropriateearningsmanagementactivitiesbypubliccompanies:SABNo.99“Materiality”,SABNo.100“RestructuringandImpairmentCharges”andSABNo.101“RevenueRecognition”.

Earningsmanagementbehaviormayaffectthequalityofaccountingearnings,whichisdefinedbySchipperandVincent(2023)astheextenttowhichthereportedearningsfaithfullyrepresentHichsianeconomicincome,whichistheamountthatcanbeconsumed(i.e.paidoutasdividends)duringaperiod,whileleavingthefirmequallywelloffatthebeginningandtheendoftheperiod.

Assessmentofearningqualityrequiressometimestheseparationsofearningsintocashfromoperationandaccruals,themoretheearningsisclosedtocashfromoperation,thehigherearningsquality.AsPenman(2023)statesthatthepurposeofaccountingqualityanalysisistodistinguishbetweenthe“hard”numbersresultingfromcashflowsandthe“soft”numbersresultingfromaccrualaccounting.

Thequalityofearningscanbeassessedbyfocusingontheearningpersistence;highqualityearningsaremorepersistentandusefulintheprocessofdecisionmaking.

BeneishandVargus(2023)investigatewhetherinsidertradingisinformativeaboutearningsqualityusingearningpersistenceasameasureforthequalityofearnings,theyfindthatincome-increasingaccrualsaresignificantlymorepersistentforfirmswithabnormalinsiderbuyingandsignificantlylesspersistentforfirmswithabnormalinsiderselling,relativetofirmswhichthereisnoabnormalinsidertrading.

Balsametal.(2023)usesthelevelofdiscretionaryaccrualsasadirectmeasure

企业盈利质量分析中英文对照外文翻译文献

forearningquality.Thediscretionaryaccrualsmodelisbasedonaregressionrelationshipbetweenthechangeintotalaccrualsasdependentvariableandchangeinsalesandchangeinthelevelofproperty,plantandequipment,changeincashflowfromoperationsandchangeinfirmsize(totalassets)asindependentvariables.Iftheregressioncoefficientsinthismodelaresignificantthatmeansthatthereisearningmanagementinthatfirmandtheearningsqualityislow.

Thisresearchpresentsanempiricalstudyonusingthreedifferentapproachesofmeasuringthequalityofearningsondifferentindustry.Thenotionis;ifthereisacompleteconsistencyamongthethreemeasures,ageneralassessmentforthequalityofearnings(highorlow)canbereachedand,ifnot,thequalityofearningsisquestionableandneedsdifferentotherapproachesformeasurementandmoreinvestigationsandanalysis.

Therestofthepaperisdividedintofollowingsections:Earningsmanagementincentives,Earningsmanagementtechniques,Modeldevelopment,Sampleandstatisticalresults,andConclusion.

2.Earningsmanagementincentives2.1Meetinganalysts’expectations

Ingeneral,analysts’expectationsandcompanypredictionstendtoaddresstwohigh-profilecomponentsoffinancialperformance:revenueandearningsfromoperations.

Thepressuretomeetrevenueexpectationsisparticularlyintenseandmaybetheprimarycatalystinleadingmanagerstoengageinearningmanagementpracticesthatresultinquestionableorfraudulentrevenuerecognitionpractices.MagrathandWeld(2023)indicatethatimproperrevenuerecognitionpracticeswerethecauseofone-thirdofallvoluntaryorforcedrestatementsofincomefiledwiththeSECfrom1977to2000.

Ironically,itisoftenthecompaniesthemselvesthatcreatethispressuretomeetthemarket’searningsexpectations.Itiscommonpracticeforcompaniestoprovideearningsestimatestoanalystsandinvestors.Managementisoftenfacedwiththetaskofensuringtheirtargetedestimatesaremet.

企业盈利质量分析中英文对照外文翻译文献

Severalcompanies,includingCoca-ColaCo.,IntelCorp.,andGilletteCo.,havetakenacontrarystanceandnolongerprovidequarterlyandannualearningsestimatestoanalysts.Indoingso,thesecompaniesclaimtheyhaveshiftedtheirfocusfrommeetingshort-termearningsestimatestoachievingtheirlong-termstrategies(MckayandBrown,2023).

2.2Toavoiddebt-covenantviolationsandminimizepoliticalcosts

Somefirmshavetheincentivetoavoidviolatingearnings-baseddebtcovenants.Ifviolated,thelendermaybeabletoraisetheinterestrateonthedebtordemandimmediaterepayment.Consequently,somefirmsmayuseearnings-managementtechniquestoincreaseearningstoavoidsuchcovenantviolations.Ontheotherhand,someotherfirmshavetheincentivetolowerearningsinordertominimizepoliticalcostsassociatedwithbeingseenastooprofitable.Forexample,ifgasolinepriceshavebeenincreasingsignificantlyandoilcompaniesareachievingrecordprofitlevel,thentheremaybeincentiveforthegovernmenttointerveneandenactanexcess-profittaxorattempttointroducepricecontrols.

2.3Tosmoothearningstowardalong-termsustainabletrend

Formanyyearsithasbeenbelievedthatafirmshouldattempttoreduce