Article2012

Comparing Abnormal Accruals Estimates across Samples: An International Test

Erik Peek · Roger Meuwissen · Frank Moers · Ann Vanstraelen

41 citations0/0 files storedEuropean Accounting Review

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Accounting and Organizational Management Corporate Governance and Financial Management

Abstract

This study examines whether accruals models' performance, in terms of predictive accuracy and power to detect earnings management, varies across strongly heterogeneous samples, such as different countries. We analyse the performance of two accruals estimation models, that is, the Modified Jones model and the Dechow–Dichev model. Using accounting data from nine countries for the period 1989–2009, we find that the models exhibit considerable cross-country performance variation and, more importantly, that this variation is systematic. We empirically establish that the international variation in sales growth persistence, accounting practices, and sample size explains a significant proportion of the cross-country performance variation, highlighting a potential inference problem in across-sample comparisons.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 41 citations exist upstream.

References

1998Law and Finance 1991Economic Growth in a Cross Section of Countries 1989Economic Growth in a Cross Section of Countries 1991Earnings Management During Import Relief Investigations 2005Performance matched discretionary accrual measures 2003Earnings management and investor protection: an international comparison 2002The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors 1999A Review of the Earnings Management Literature and Its Implications for Standard Setting

Cited by

2018Corporate governance of audit firms: Assessing the usefulness of transparency reports in a Europe‐wide analysis 2011Management Reporting on Internal Control and Accruals Quality: Insights from a “Comply-or-Explain” Internal Control Regime 2021Financial reporting quality effects of imposing (gender) quotas on boards of directors 2019The effect of audit market structure on audit quality and audit pricing in the private‐client market 2020Enforcement, Managerial Discretion, and the Informativeness of Accruals

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.