Study on the association between earnings management and value relevance based on the reporting method used for operating cash flows
This paper analyses the association between earnings management and value relevance of accounting information, for a number of 556 observations from a sample of 65 companies listed on the Bucharest Stock Exchange during a 10 year period: 2006-2015. Sampled companies are classified according to the m...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Chamber of Financial Auditors of Romania
2018-02-01
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| Series: | Audit Financiar |
| Subjects: | |
| Online Access: |
http://revista.cafr.ro/temp/Article_9563.pdf
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| _version_ | 1818116319938084864 |
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| author | Marilena Mironiuc Mihaela Chiriac Maria Carmen Huian |
| author_facet | Marilena Mironiuc Mihaela Chiriac Maria Carmen Huian |
| author_sort | Marilena Mironiuc |
| collection | DOAJ |
| description | This paper analyses the association between earnings management and value relevance of accounting information, for a number of 556 observations from a sample of 65 companies listed on the Bucharest Stock Exchange during a 10 year period: 2006-2015. Sampled companies are classified according to the method used for the reporting of operating cash flows. Findings confirm that entities using the indirect method have a higher level of discretionary accruals and are more tempted to opportunistically increase their earnings. As far as value relevance is concerned, results show that participants on the Romanian capital market place more weight on the information reported by entities experiencing higher levels of discretionary accruals. |
| first_indexed | 2024-12-11T04:20:38Z |
| format | Article |
| id | doaj.art-585382ad1ff24858add503e60268511a |
| institution | Directory Open Access Journal |
| issn | 1844-8801 |
| language | English |
| last_indexed | 2024-12-11T04:20:38Z |
| publishDate | 2018-02-01 |
| publisher | Chamber of Financial Auditors of Romania |
| record_format | Article |
| series | Audit Financiar |
| spelling | doaj.art-585382ad1ff24858add503e60268511a2022-12-22T01:21:08ZengChamber of Financial Auditors of RomaniaAudit Financiar1844-88012018-02-011614910111010.20869/AUDITF/2018/149/1019563Study on the association between earnings management and value relevance based on the reporting method used for operating cash flowsMarilena Mironiuc0Mihaela Chiriac1Maria Carmen Huian2 "Alexandru Ioan Cuza” University of Iasi, Romania “Alexandru Ioan Cuza” University of Iasi, Romania Alexandru Ioan Cuza” University of Iasi, Romania This paper analyses the association between earnings management and value relevance of accounting information, for a number of 556 observations from a sample of 65 companies listed on the Bucharest Stock Exchange during a 10 year period: 2006-2015. Sampled companies are classified according to the method used for the reporting of operating cash flows. Findings confirm that entities using the indirect method have a higher level of discretionary accruals and are more tempted to opportunistically increase their earnings. As far as value relevance is concerned, results show that participants on the Romanian capital market place more weight on the information reported by entities experiencing higher levels of discretionary accruals. http://revista.cafr.ro/temp/Article_9563.pdf accounting qualityearnings managementvalue relevancecash flows |
| spellingShingle | Marilena Mironiuc Mihaela Chiriac Maria Carmen Huian Study on the association between earnings management and value relevance based on the reporting method used for operating cash flows Audit Financiar accounting quality earnings management value relevance cash flows |
| title | Study on the association between earnings management and value relevance based on the reporting method used for operating cash flows |
| title_full | Study on the association between earnings management and value relevance based on the reporting method used for operating cash flows |
| title_fullStr | Study on the association between earnings management and value relevance based on the reporting method used for operating cash flows |
| title_full_unstemmed | Study on the association between earnings management and value relevance based on the reporting method used for operating cash flows |
| title_short | Study on the association between earnings management and value relevance based on the reporting method used for operating cash flows |
| title_sort | study on the association between earnings management and value relevance based on the reporting method used for operating cash flows |
| topic | accounting quality earnings management value relevance cash flows |
| url |
http://revista.cafr.ro/temp/Article_9563.pdf
|
| work_keys_str_mv | AT marilenamironiuc studyontheassociationbetweenearningsmanagementandvaluerelevancebasedonthereportingmethodusedforoperatingcashflows AT mihaelachiriac studyontheassociationbetweenearningsmanagementandvaluerelevancebasedonthereportingmethodusedforoperatingcashflows AT mariacarmenhuian studyontheassociationbetweenearningsmanagementandvaluerelevancebasedonthereportingmethodusedforoperatingcashflows |