Search results for "EARNINGS"
showing 10 items of 157 documents
Short-Termism: A Step Forward Toward Long-Term Performance or a Dead End
2018
The debate around short-termism and its effects on the economic life, rather negative than positive, is far from ending, having academics, practitioners, and pundits arguing on this topic. The purpose of this paper is to determine if short-termism is part of the process of creating long-term performance (value) in an organization or it is harmful for harnessing performance, by presenting the definitions of the concept, who are the main promoters of short-termism, opinions of both academics and practitioners, and studies and examples that sustain on the one side the fact that short-termism encourages the manipulation of numbers in order to meet quarterly earnings, by cutting investments from…
The Impact of Working Memory Training on Children’s Cognitive and Noncognitive Skills
2020
Working memory capacity is thought to play an important role for a wide range of cognitive and noncognitive skills such as fluid intelligence, math, reading, the inhibition of pre-potent impulses or more general self-regulation abilities. Because these abilities substantially affect individuals' life trajectories in terms of health, education, and earnings, the question of whether working memory (WM) training can improve them is of considerable importance. However, whether WM training leads to improvements in these far-transfer skills is contested. Here, we examine the causal impact of WM training embedded in regular school teaching by a randomized educational intervention involving a sampl…
Three essays on mergers and acquisitions and earnings management in Europe
2020
The general objective of the thesis is to analyze how bidders include the earnings management (EM) by target firms in M&A negotiations in Europe, particularly when setting the terms of the M&As, such as the bid premiums and the percentage to acquire. Three specific objectives are proposed to achieve that. Firstly, the thesis analyzes the context of M&As in Europe to understand better the European market of corporate control. Secondly, the research examines the relation between the EM of targets and the premiums offered by acquirers, at deal announcements, and the role of the industry relatedness between firms involved in the deal. Thirdly, the study examines the association between the EM o…
Patterns of inter- and intra-regional differences in human capital and earnings : Evidence from Finland and Sweden 1987–2015
2021
In this paper, we examine the long-term patterns of geographical disparities in human capital and income in Finland and Sweden over the period 1987–2015. Using nationwide longitudinal population register data, we analyze disparities at different spatial scales, between and within functional labor market regions determined by observed travel-to-work patterns. Contrary to the findings from many other developed economies indicating inter-regional divergence in per capita income, we find indications of inter-regional convergence in per capita earnings among the functional labor market regions in both countries after 2000. However, small, and peripheral regions have not recovered from the macroe…
Earnings management of target firms and deal premiums: The role of industry relatedness
2022
This paper contributes to the merger and acquisitions (M&A) literature by providing evidence for the role of industry relatedness in the association between target firms' earnings management (EM) before the deal and the premium offered by the acquirer. We argue that familiarity with the industry's policies and practices is a crucial factor that helps acquirers to see through targets' EM. Our evidence supports this prediction in relation to accounting manipulation as we observe that the income increasing accrual manipulation of the target results in significantly higher premiums offered by acquirers in interindustry deals, which is not the case when targets and acquirers belong to the same i…
Gender Discrimination and the Monitoring Role of Female Directors Over Accounting Quality
2016
Recent research in accounting suggests female directors exert more stringent monitoring over the financial reporting process than their male counterparts. However, an emerging literature in finance and economics questions whether females in leadership roles significantly differ from their male counterparts. Building on this literature, we re-examine the link between the presence of female directors, gender biases, and financial statements quality. Using a large sample of UK firms we find that a larger percentage of women among independent directors is significantly associated with lower earnings management practices. However, we show that this relation disappears if we focus on firms that d…
The predictive ability and value relevance of accounting measures
2011
Accepted version of an article published in the journal: International Journal of Economics and Accounting. Also available from the publisher at: http://dx.doi.org/10.1504/IJEA.2011.041894 Empirical accounting research sometimes assumes that the value relevance of accounting variables can be indirectly assessed by studying the ability of the variables to forecast future cash flow and earnings. This study investigates the relationships between short-term cash flow and earnings prediction tests and value relevance analyses. I find that earnings prediction tests might be good substitutes for value relevance analyses, whereas cash flow prediction tests merely provide indications with respect to…
Earnings management to exceed thresholds in continental and Anglo-Saxon accounting models: The British and French cases
2017
International audience; The purpose of this paper is to compare the extent to which French and British firms manage their earnings in order to avoid losses, decreases in earnings and earnings below the forecasts of analysts. Further, this study aims to investigate the factors that potentially influence earnings management to exceed thresholds with reference to the Anglo-Saxon and continental accounting models. Britain and France, correspondingly, belong to those different socio-economic environments. Based on a panel data of 1771 French and 2057 British firm-year observations during the period 2002–2012, we show that all firms considered manage earnings to beat zero and last year’s earnings…
Modeling Return to Education in Heterogeneous Populations: An Application to Italy
2019
The Mincer human capital earnings function is a regression model that relates individual’s earnings to schooling and experience. It has been used to explain individual behavior with respect to educational choices and to indicate productivity on a large number of countries and across many different demographic groups. However, recent empirical studies have shown that often the population of interest embed latent homogeneous subpopulations, with different returns to education across subpopulations, rendering a single Mincer’s regression inadequate. Moreover, whatever (concomitant) information is available about the nature of such a heterogeneity, it should be incorporated in an appropriate ma…
Active Learning on Trust and Reciprocity for Undergraduates
2019
We propose a teaching activity aimed at promoting social values, such as trust and reciprocity, among undergraduate students in economics and related degrees. We present our pilot experience of what we call RED&ndash