The Behavior of Earnings Quality in Different Business Cycles Using Panel Smooth Transition Regression (PSTR) Model
This paper investigates the threshold effects of business cycles on earnings quality for the period of 2005 to 2015, using Panel Smooth Transition Regression (PSTR) model as one of the most prominent regime-switching models. For this end, accruals quality and earnings smoothing are used as measures...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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University of Tehran
2018-05-01
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| Series: | بررسیهای حسابداری و حسابرسی |
| Subjects: | |
| Online Access: | https://acctgrev.ut.ac.ir/article_66303_ffcef7985c50ce866220db0406adcf6d.pdf |
| _version_ | 1818472947295191040 |
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| author | Nasrin Mohamadi Asl Gholamreza Mansourfar Kioumars Shahbazi |
| author_facet | Nasrin Mohamadi Asl Gholamreza Mansourfar Kioumars Shahbazi |
| author_sort | Nasrin Mohamadi Asl |
| collection | DOAJ |
| description | This paper investigates the threshold effects of business cycles on earnings quality for the period of 2005 to 2015, using Panel Smooth Transition Regression (PSTR) model as one of the most prominent regime-switching models. For this end, accruals quality and earnings smoothing are used as measures of earnings quality, and sales growth as transition variable. The linearity test results indicate nonlinear relationship among variables under consideration. Moreover, considering one transition function and one threshold parameter, as a two regime model, is sufficient to specification the nonlinear relationship among variables. The results indicate that in the first regime, business cycles have a negative impact on both earnings smoothing and accruals quality, and beyond threshold value, in the second regime, the impact of business cycles is positive. Therefore business cycles have played an important role on the earnings quality. |
| first_indexed | 2024-04-14T04:14:49Z |
| format | Article |
| id | doaj.art-03bec98886a64ee7bef8818e65ca7d68 |
| institution | Directory Open Access Journal |
| issn | 2645-8020 2645-8039 |
| language | fas |
| last_indexed | 2024-04-14T04:14:49Z |
| publishDate | 2018-05-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | بررسیهای حسابداری و حسابرسی |
| spelling | doaj.art-03bec98886a64ee7bef8818e65ca7d682022-12-22T02:12:52ZfasUniversity of Tehranبررسیهای حسابداری و حسابرسی2645-80202645-80392018-05-0125111313410.22059/acctgrev.2018.240369.100768166303The Behavior of Earnings Quality in Different Business Cycles Using Panel Smooth Transition Regression (PSTR) ModelNasrin Mohamadi Asl0Gholamreza Mansourfar1Kioumars Shahbazi2MSc. in Accounting, Urmia University, West Azerbaijan, Urmia, IranAssociate Prof. Accounting Dept. Urmia University, Urmia, IranEconomics Dept, Faculty of Economics and Management, Urmia, IranThis paper investigates the threshold effects of business cycles on earnings quality for the period of 2005 to 2015, using Panel Smooth Transition Regression (PSTR) model as one of the most prominent regime-switching models. For this end, accruals quality and earnings smoothing are used as measures of earnings quality, and sales growth as transition variable. The linearity test results indicate nonlinear relationship among variables under consideration. Moreover, considering one transition function and one threshold parameter, as a two regime model, is sufficient to specification the nonlinear relationship among variables. The results indicate that in the first regime, business cycles have a negative impact on both earnings smoothing and accruals quality, and beyond threshold value, in the second regime, the impact of business cycles is positive. Therefore business cycles have played an important role on the earnings quality.https://acctgrev.ut.ac.ir/article_66303_ffcef7985c50ce866220db0406adcf6d.pdfAccruals qualityBusiness cyclesEarnings QualityEarnings smoothingThreshold effect |
| spellingShingle | Nasrin Mohamadi Asl Gholamreza Mansourfar Kioumars Shahbazi The Behavior of Earnings Quality in Different Business Cycles Using Panel Smooth Transition Regression (PSTR) Model بررسیهای حسابداری و حسابرسی Accruals quality Business cycles Earnings Quality Earnings smoothing Threshold effect |
| title | The Behavior of Earnings Quality in Different Business Cycles Using Panel Smooth Transition Regression (PSTR) Model |
| title_full | The Behavior of Earnings Quality in Different Business Cycles Using Panel Smooth Transition Regression (PSTR) Model |
| title_fullStr | The Behavior of Earnings Quality in Different Business Cycles Using Panel Smooth Transition Regression (PSTR) Model |
| title_full_unstemmed | The Behavior of Earnings Quality in Different Business Cycles Using Panel Smooth Transition Regression (PSTR) Model |
| title_short | The Behavior of Earnings Quality in Different Business Cycles Using Panel Smooth Transition Regression (PSTR) Model |
| title_sort | behavior of earnings quality in different business cycles using panel smooth transition regression pstr model |
| topic | Accruals quality Business cycles Earnings Quality Earnings smoothing Threshold effect |
| url | https://acctgrev.ut.ac.ir/article_66303_ffcef7985c50ce866220db0406adcf6d.pdf |
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