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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF APPLIED BUSINESS AND ECONOMICS


Accruals, Earnings Quality and Research Methodology



Author(s): B. Brian Lee, Alfreda Dobiyanski, Marianna Sviland, Limin “Pricilla” Zhu

Citation: B. Brian Lee, Alfreda Dobiyanski, Marianna Sviland, Limin “Pricilla” Zhu, (2020) "Accruals, Earnings Quality and Research Methodology," Journal of Applied Business and Economics, Vol. 22, Iss.1,  pp. 92-105

Article Type: Research paper

Publisher: North American Business Press

​Abstract:

We first review prior earnings management studies with an emphasis on discretionary accruals as a proxy for earnings management. Discretionary accruals are estimated using widely accepted models, such as the Jones model or its updated ones with additional control variables to improve their prediction
power. Nonetheless, estimated discretionary accruals are still subject to model specification errors. Then, we review alternative methods to identify earnings management by evaluating earnings distribution properties and frequencies of digits in collected accounting numbers. These alternative methods can identify anomalies in earnings distributions or frequencies of digits, but cannot explain how such anomalies take place. Accordingly, future studies of earnings management may employ these alternative methods in conjunction with discretionary accruals to offer a better insight into earnings management practices.