Earnings Predictability, Value Relevance, and Employee Expenses

Schiemann, Frank

doi:10.1016/j.intacc.2013.04.001

Cited by 21 publications

(32 citation statements)

References 43 publications

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“…If past earnings are good estimates of current earnings then predictability is considered high. This characteristic is accounting-based, i.e., it considers the relations between accounting numbers (past earnings to current earnings) while ignoring information from outside the accounting regime, for example, the market perception regarding the reported earnings (Schiemann & Guenther, 2013).…”

Section: Predictability Of Earningsmentioning

confidence: 99%

Aspects of the quality of accounting in the international context

Mazzioni

Klann

2018

RBGN

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Purpose -Analyze how the characteristics of the business environment generates differences in the quality of accounting information in the international context. Findings -Companies located in countries with lower tax burden, stronger legal environment, greater economic and financial development index, common law legal origin and higher degree of internationalization presented higher averages and significant differences in the aggregate ranking of the quality of accounting information. The type of standard accounting used also influenced the position in the aggregate ranking of the accounting information quality.Originality/value -The interaction of companies with external markets influences the choices of accounting policies. The countries' environmental characteristics, related to transparency, economic nature, legal and tax environment, lead to various levels of the quality of accounting information reported by companies.

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Section: Predictability Of Earningsmentioning

confidence: 99%

Aspects of the quality of accounting in the international context

Mazzioni

Klann

2018

RBGN

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“…If past earnings are appropriate estimates of current earnings then predictability is said to be high. This characteristic is accounting-based, because it considers the relations between accounting numbers (past earnings to current earnings) and ignores the information from outside the accounting regime, for example, the market perception of reported earnings (Schiemann and Guenther, 2013).…”

Section: Introductionmentioning

confidence: 99%

“…So, it could be concluded that companies consider the employees more important and crucial for firm performance. In spite of important role of employees in firm performance, there is not enough information about employees in financial statements (Schiemann and Guenther, 2013).…”

Section: Introductionmentioning

confidence: 99%

Analytical investigation of human resource’s current expenses role in earnings predictability and value relevance: evidence from Iran

Akhgar¹,

Rostamian²

2018

Int. j. adv. appl. sci.

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The purpose of this study is to investigate the effects of human resources current expenses, as a large and persistent component of earning, on the prediction of firm future performance. So, based on existing literature, the employee model and earning model have introduced and two dependent variables, earning predictability and value relevance, have entered into these models. In this study, 125 listed companies on TSE over a period of 7 years, between 2006 and 2013 selected as sample. Firstly, in this research by using mean comparison test (t-test), the two models have been compared and the results show that employee model, due the consideration of employee expenses (in addition to the earnings), has a better explanation of company's future performance. Then by using multiple regression and ordinary least squares method, three properties of human resource current expenses; named average salary per employee, employee expenses intensity, employee expenses persistence; and the difference in earning predictability and value relevance of two models have been investigated. This study is the first to investigate the effects of human Resource's current expenses on earnings predictability and value relevance of Iranian firms. Also, the provided empirical evidence in this paper further enhances the role of an employee by developing employee model. Results show that there is a significant relationship between the persistence of human resource current expenses and earning predictability and value relevance. The two other properties have a significant relationship with earning predictability but do not have a significant relationship with value relevance.

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“…Se os lucros do passado são boas estimativas dos lucros correntes, então a previsibilidade é tida para ser elevada. Essa característica está baseada na contabilidade, ou seja, considera as relações entre os números contábeis (lucros passados para lucros correntes), embora ignore as informações que estão fora do regime contábil, a exemplo da percepção do mercado sobre os lucros divulgados (SCHIEMANN;GUENTHER, 2013).Os analistas financeiros visualizam os lucros como tendo alta qualidade quando se pode esperar uma repetição de forma consistente e com um alto grau de previsibilidade. Os ganhos voláteis possuem a tendência de serem ganhos extremos e tendem a reverter-se para a média mais rapidamente (FREEMAN; OHLSON; PENMAN, 1982), o que constituiu uma explicação alternativa para que ganhos voláteis sejam menos persistentes.…”

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Determinantes da qualidade da informação contábil no contexto internacional

Mazzioni

Klann

2016

R. Contemp. Contab.

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ResumoO objetivo do estudo é analisar a influência do grau de internacionalização das empresas, em conjunto com as normas reguladoras e os incentivos empresariais, na qualidade das informações contábeis. Para tanto, foi realizada pesquisa descritiva, documental e quantitativa com 1.406 empresas localizadas em doze países. A amostra considerou empresas que divulgaram informações sobre suas receitas e ativos no exterior, além das demais informações necessárias para operacionalizar os atributos de qualidade dos accruals, persistência, previsibilidade e suavização dos resultados. Após a mensuração individual de cada atributo por empresa, elaborou-se um ranking da qualidade da informação contábil, com base no método de análise multicritério TOPSIS e da técnica da entropia. Os resultados indicaram que, ao se considerar o ambiente legal, o nível de percepção da corrupção e a origem legal dos países hospedeiros das empresas, a menor alavancagem financeira e a maior intensidade na internacionalização das empresas se mostraram fatores determinantes para o melhor posicionamento no ranking da qualidade da informação contábil. Palavras-chave: Normas reguladoras. Incentivos empresariais. Internacionalização das empresas. AbstractThe objective of the study is to analyze the influence of the degree of internationalization of companies, together with regulatory standards and business incentives, the quality of accounting. For this purpose, descriptive, documentary and quantitative survey was conducted with 1,406 companies located in twelve countries. The sample considered companies released information about their income and assets abroad, in addition to other information needed to operationalize the attributes quality of accruals, persistence, predictability and smoothing. After individual measurement of each attribute by company, elaborated a ranking of the quality of accounting information, from the multi-criteria analysis method TOPSIS and entropy technique. The results indicated that, when considering the legal environment, the level of perception of corruption and the legal origin of the host countries of companies, lower financial leverage and the greater intensity in the internationalization of companies have proved decisive factors for the better position in the ranking the quality of accounting information.Keywords: Regulatory standards. Business incentives. Internationalization of the companies. ResumenEl objetivo del estudio es analizar la influencia del grado de internacionalización de las empresas, junto con las normas reguladoras y con los incentivos empresariales, in la calidad de la información contable. Por lo tanto, la investigación descriptiva, documental y cuantitativa se realizó con 1.406 empresas ubicadas en doce países. La muestra fue considerada por las compañías con información sobre sus ingresos y activos en el exterior, además de otra información necesaria para poner en práctica los atributos de calidad de acumulaciones, la persistencia, la previsibilidad y suavización de los resultados. Después de la...

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Earnings Predictability, Value Relevance, and Employee Expenses

Cited by 21 publications

References 43 publications

Aspects of the quality of accounting in the international context

Aspects of the quality of accounting in the international context

Analytical investigation of human resource’s current expenses role in earnings predictability and value relevance: evidence from Iran

Determinantes da qualidade da informação contábil no contexto internacional

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