The Effect of Financial Performances on Earnings Quality of Serbian Hotels

Abstract

This study examines the effect of financial performances on earnings quality using a sample of Serbian hotels during the period 2015-2019. First, the authors build a multidimensional measure of earnings quality including attributes as the hotel’s going concerned, size, current liquidity, age, profitability, and leverage. Second, the authors examine variables that are potentially associated with earnings quality. The methodology includes descriptive statistics, univariate test, correlation matrix for the variables, multivariate regression, F-test. This paper presents managerial implications for professionals, users of financial statements, and academics.