This study seeks to measure abnormal accruals by modeling of accruals. In this study, investigating the literature and interviewing experts is used for recognizing alternative approaches on accruals modeling. Then, type I and II errors are measured as efficient measures of accruals. Findings show that accruals measurement by cash flow approach (adjusted according to FASB standards) is more efficient than alternative approaches. Among factors explaining accruals, “changes in total revenue less unexpected credit revenue”, “operating cash flows” and “lagged accruals’ assist to model efficiency. Intercept and scaling by market value is better than alternatives. All models (including research model) have appropriate efficient (type I error). However then measuring type II error, only study model is most efficient. Therefore study model have most power for recognizing firms managing earnings.
Moradi, M. (2015). Modeling of Earnings Quality in Tehran Stock Exchange: Accruals Role. Accounting and Auditing Research, 7(25), 76-99. doi: 10.22034/iaar.2015.103918
MLA
Mohammad Moradi. "Modeling of Earnings Quality in Tehran Stock Exchange: Accruals Role". Accounting and Auditing Research, 7, 25, 2015, 76-99. doi: 10.22034/iaar.2015.103918
HARVARD
Moradi, M. (2015). 'Modeling of Earnings Quality in Tehran Stock Exchange: Accruals Role', Accounting and Auditing Research, 7(25), pp. 76-99. doi: 10.22034/iaar.2015.103918
VANCOUVER
Moradi, M. Modeling of Earnings Quality in Tehran Stock Exchange: Accruals Role. Accounting and Auditing Research, 2015; 7(25): 76-99. doi: 10.22034/iaar.2015.103918
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