Errors in estimating accruals: The role of accrual measurement
There are different ways in which accruals are measured in academic research. Ohlson (2014) provides a conceptual construct of accruals as the change in non-cash assets and liabilities. This measure includes accruals that are less manipulated for earnings management purposes and may be classified as...
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| Format: | Article |
| Language: | fas |
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Alzahra University
2022-09-01
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| Series: | پژوهشهای تجربی حسابداری |
| Subjects: | |
| Online Access: | https://jera.alzahra.ac.ir/article_6520_a44a481732252e2a5b335971c326b71c.pdf |
| _version_ | 1797955961654083584 |
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| author | Sara Salimi Ghaleh Hossein Etemadi Javad Rezazadeh mansour momeni |
| author_facet | Sara Salimi Ghaleh Hossein Etemadi Javad Rezazadeh mansour momeni |
| author_sort | Sara Salimi Ghaleh |
| collection | DOAJ |
| description | There are different ways in which accruals are measured in academic research. Ohlson (2014) provides a conceptual construct of accruals as the change in non-cash assets and liabilities. This measure includes accruals that are less manipulated for earnings management purposes and may be classified as discretionary accruals since they are not controlled in well-known models. This can lead to errors in the estimation of discretionary accruals (earnings management index in a wide range of accounting research). In accounting research, discretionary accruals are commonly used as an indicator of earnings management. The purpose of this study is to investigate type one error due to how accruals are measured in the test of earnings management. to investigate this problem in this study Jones (1991) and Dechow and Dichev's ( 2002) models, are examined using 157 firms listed in Tehran Stock Exchange from 2007 to 2018 under two different ways of accrual measurement approaches (balance sheet vs cash flow approaches). Findings show that the difference due to the measurement approach is classified as discretionary accruals. However, the simulations performed for the test of earnings management do not show an unacceptable type one error at the 95% confidence level for any of these approaches, suggesting that researchers can rely on Ohlson’s structure in measuring accruals. |
| first_indexed | 2024-04-10T23:42:29Z |
| format | Article |
| id | doaj.art-4c093407fc064559bc10f7fd277bda47 |
| institution | Directory Open Access Journal |
| issn | 2251-8509 2538-1520 |
| language | fas |
| last_indexed | 2024-04-10T23:42:29Z |
| publishDate | 2022-09-01 |
| publisher | Alzahra University |
| record_format | Article |
| series | پژوهشهای تجربی حسابداری |
| spelling | doaj.art-4c093407fc064559bc10f7fd277bda472023-01-11T06:16:04ZfasAlzahra Universityپژوهشهای تجربی حسابداری2251-85092538-15202022-09-01123618010.22051/jera.2022.37366.29166520Errors in estimating accruals: The role of accrual measurementSara Salimi Ghaleh0Hossein Etemadi1Javad Rezazadeh2mansour momeni3Ph.D. Student, Department of Management and Economics, Tarbiat Modares University, Tehran, IranProfessor of accounting, Department of Management and Economics, Tarbiat Modares University, Tehran, IranAssociate Professor of accounting. Department of Management and Economics, Tarbiat Modares University, Tehran, IranProfessor, Department of Management, Tehran University, Tehran, IranThere are different ways in which accruals are measured in academic research. Ohlson (2014) provides a conceptual construct of accruals as the change in non-cash assets and liabilities. This measure includes accruals that are less manipulated for earnings management purposes and may be classified as discretionary accruals since they are not controlled in well-known models. This can lead to errors in the estimation of discretionary accruals (earnings management index in a wide range of accounting research). In accounting research, discretionary accruals are commonly used as an indicator of earnings management. The purpose of this study is to investigate type one error due to how accruals are measured in the test of earnings management. to investigate this problem in this study Jones (1991) and Dechow and Dichev's ( 2002) models, are examined using 157 firms listed in Tehran Stock Exchange from 2007 to 2018 under two different ways of accrual measurement approaches (balance sheet vs cash flow approaches). Findings show that the difference due to the measurement approach is classified as discretionary accruals. However, the simulations performed for the test of earnings management do not show an unacceptable type one error at the 95% confidence level for any of these approaches, suggesting that researchers can rely on Ohlson’s structure in measuring accruals.https://jera.alzahra.ac.ir/article_6520_a44a481732252e2a5b335971c326b71c.pdfaccrualsearnings managementmeasurement. estimation error |
| spellingShingle | Sara Salimi Ghaleh Hossein Etemadi Javad Rezazadeh mansour momeni Errors in estimating accruals: The role of accrual measurement پژوهشهای تجربی حسابداری accruals earnings management measurement. estimation error |
| title | Errors in estimating accruals: The role of accrual measurement |
| title_full | Errors in estimating accruals: The role of accrual measurement |
| title_fullStr | Errors in estimating accruals: The role of accrual measurement |
| title_full_unstemmed | Errors in estimating accruals: The role of accrual measurement |
| title_short | Errors in estimating accruals: The role of accrual measurement |
| title_sort | errors in estimating accruals the role of accrual measurement |
| topic | accruals earnings management measurement. estimation error |
| url | https://jera.alzahra.ac.ir/article_6520_a44a481732252e2a5b335971c326b71c.pdf |
| work_keys_str_mv | AT sarasalimighaleh errorsinestimatingaccrualstheroleofaccrualmeasurement AT hosseinetemadi errorsinestimatingaccrualstheroleofaccrualmeasurement AT javadrezazadeh errorsinestimatingaccrualstheroleofaccrualmeasurement AT mansourmomeni errorsinestimatingaccrualstheroleofaccrualmeasurement |