Accounting Research Vol. 49 No. 3 June 2011 Printed in U.S.A. Earnings Quality Based on Corporate Investment Decisions FENG LI∗ Received 25 July 2007; accepted 20 September 2010 ABSTRACT In this paper‚ I examine a new approach for measuring earnings quality‚ defined as the closeness of reported earnings to “permanent earnings‚” based on firm decisions with regard to capital and labor investments. Specifically‚ I measure earnings quality as the contemporaneous association between changes in
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BUSINESS MODEL GENERATION EXERCISE RQ1 What is a Business Model? At least 2 paragraphs. The first step in implementing an effective business model is to adequately understand the definition. Osterwalder and Pigneur (2010) define a business model as “the rationale of how an organization creates‚ delivers‚ and captures value.” (14) In simple terms‚ a business model is an outline or a blueprint an organization uses to constract effective processes‚ structure‚ and systems. While business
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MODEL QUESTION PAPER 2013-14 MATHEMATICS CLASS –X Time allowed : 3 hours Maximum Marks :90 General Instructions: (i) (ii) (iii) (iv) (v) All questions are compulsory. The question paper consists of 34 questions divided into four sections A‚B‚C and D . Section A comprises of 8 questions of 1 mark each ‚ section B comprises of 6 questions of 2 marks each‚ section C comprises of 10 questions of 3 marks each and section D comprises 10 questions of 4 marks each. Questions numbers 1 to 8 in section
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Is earnings management good or bad? Who (or which part of corporate governance mechanisms) is responsible to constrain earnings management? To what extent can the auditor constrain earnings management? Propose some methods for the auditors to detect and constrain earnings management. Does market react to firm’s earnings management behavior? In order to discuss earnings management and what its affects are on business and whether or not it’s a good thing‚ one must first understand what earnings management
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COMPARATIVE STUDY OF RETAINED EARNINGS OF LUPIN v/s WYETH INTRODUCTION Managing a company’s operations‚ marketing and sales activities and expense management are but a few of the decisions that management has to deal with. After it has made a profit the company will then need to decide what to do with those profits. Among the options for using profits are: operations‚ returning cash to shareholders‚ or keeping cash in reserve for future use Retained earnings represent the amount a company
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Price-to-earnings ratio (P/E) is often used for assessing the company’s stock price. P/E is determined by first calculating the earnings per shares (EPS)‚ which is the post-tax profits divides by the number of shares (Figure 1). Trailing P/E is equal to current market share price divided by trailing earnings per share for the past 12 months‚ whereas forward P/E is equal to current share price divided by expected earnings per shares for the next 12 months or next full-year fiscal period (http://www
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being an ethical profession. In recent years‚ however‚ some companies have asked their accountants to help "manage earnings." What does it mean to manage earnings? Who is more likely to be involved in such a situation‚ the financial accountant or the management accountant? Why? Do you believe that managing earnings is ethical? Discuss the rationale for your answer. The major role of financial reporting is to effectively communicate financial information to outsiders in a timely and credible
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| Earning Management | Quality of Accounting Information | | Nur Mohammad Arif | 20-Mar-13 | A report on Earning Management & Quality of Accounting Information Subject: Accounting Principles By | Nur Mohammad Arif | 131-0647-660 | Earning Management & Quality of Accounting Information ABSTRACT: This group report contains a simple descriptive analysis on the Earning Management and Quality of Accounting information for users. Business‚ Investments‚ Profit &
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Determinants of Earnings Improving someone’s success in the labour market is a main objective of both family and policy makers‚ especially those with low earning in recent years. In the classic view of labour earning‚ we assume that the skills of individuals are the dominant factor to determine the earnings’ level. However‚ the recent year study manifests multiple factors have been weighed more than before. To illustrate this new situation‚ it believes that individuals’ successes in labour
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Price/Earnings Ratio Model (P/E) The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular metric of stock analysis. A valuation ratio of a company’s current share price compared to its per-share earnings. For example‚ if a company is currently trading at $60 a share and earnings over the last 12 months were $2 per share‚ the P/E ratio for the stock would be 30 ($60/$2). The earnings multiplier can be computed as follows: P/E Ratio = Current
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