The Effect of Earnings Management on the Performance of Accounting Earnings-Based Valuation Models
Some valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical e...
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2016-06-01
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| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_11483_d41d8cd98f00b204e9800998ecf8427e.pdf |
| _version_ | 1797378353336942592 |
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| author | عباس افلاطونی |
| author_facet | عباس افلاطونی |
| author_sort | عباس افلاطونی |
| collection | DOAJ |
| description | Some valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical evidences, earnings management that is done using accruals and real activities manipulation; shift the earnings quality, and using the managed earnings in earnings-based valuation models lead to incorrect results. The first stage of this research that is done on 116 firms listed in Tehran Stock Exchange from 2003 to the end of 2013 compares the performance of Residual Income Model (RIM) and discounted cash flow model (DCF). The second stage compares the performance of mentioned models in suspected and non-suspected firms to earnings management and to control the effects of some variables on results, the regression analyses is applied. The research results show that, although in total sample the performance of RIM is higher than that of discounted DCF, the performance of RIM is significantly lower than that of DCF in suspected firms. |
| first_indexed | 2024-03-08T20:06:39Z |
| format | Article |
| id | doaj.art-fa0ec19125b448f5a8a28d6db3d49edf |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:06:39Z |
| publishDate | 2016-06-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-fa0ec19125b448f5a8a28d6db3d49edf2023-12-23T10:36:24ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192016-06-01135010.22054/qjma.2020.2491.111011483The Effect of Earnings Management on the Performance of Accounting Earnings-Based Valuation Modelsعباس افلاطونی0Bu-Ali sina university of HamadanSome valuation models use the accounting earnings and others use the cash flows as inputs to measure the intrinsic value of stocks. The empirical evidences show that the performance of earnings-based models is generally higher than that of non-earnings-based models. In addition, based on empirical evidences, earnings management that is done using accruals and real activities manipulation; shift the earnings quality, and using the managed earnings in earnings-based valuation models lead to incorrect results. The first stage of this research that is done on 116 firms listed in Tehran Stock Exchange from 2003 to the end of 2013 compares the performance of Residual Income Model (RIM) and discounted cash flow model (DCF). The second stage compares the performance of mentioned models in suspected and non-suspected firms to earnings management and to control the effects of some variables on results, the regression analyses is applied. The research results show that, although in total sample the performance of RIM is higher than that of discounted DCF, the performance of RIM is significantly lower than that of DCF in suspected firms.https://qjma.atu.ac.ir/article_11483_d41d8cd98f00b204e9800998ecf8427e.pdfresidual income modeldiscounted cash flow modelearnings managementreal activities manipulation |
| spellingShingle | عباس افلاطونی The Effect of Earnings Management on the Performance of Accounting Earnings-Based Valuation Models مطالعات تجربی حسابداری مالی residual income model discounted cash flow model earnings management real activities manipulation |
| title | The Effect of Earnings Management on the Performance of Accounting Earnings-Based Valuation Models |
| title_full | The Effect of Earnings Management on the Performance of Accounting Earnings-Based Valuation Models |
| title_fullStr | The Effect of Earnings Management on the Performance of Accounting Earnings-Based Valuation Models |
| title_full_unstemmed | The Effect of Earnings Management on the Performance of Accounting Earnings-Based Valuation Models |
| title_short | The Effect of Earnings Management on the Performance of Accounting Earnings-Based Valuation Models |
| title_sort | effect of earnings management on the performance of accounting earnings based valuation models |
| topic | residual income model discounted cash flow model earnings management real activities manipulation |
| url | https://qjma.atu.ac.ir/article_11483_d41d8cd98f00b204e9800998ecf8427e.pdf |
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