Pengukuran Stubben Essay


Vol. eighty-five, No . 2

pp. 695–717

American Accounting Association

DOI: 10. 2308 / accr. 2010. eighty five. 2 . 695

Discretionary Revenues as a Way of measuring

Earnings Supervision

Stephen Ur. Stubben

The University of North Carolina at Chapel Hill

ABSTRACT: This kind of study investigates the ability of revenue and accrual designs to detect simulated and actual earnings management. The results reveal that earnings models are less biased, better specified, and even more powerful than commonly used accrual models. Using a simulation procedure, I realize that revenue versions are more likely than accrual types to discover a combination of income and expense manipulation. Utilizing a sample of firms subject to SEC observance actions for any mix of revenue- and expenserelated misstatements, I find that, although revenue versions detect treatment, accrual models do not. These kinds of findings provide support to get using measures of discretionary revenues to study earnings management. Keywords: profits; earnings administration; discretionary accruals. Data Availableness: Data can be obtained from open public sources.


his study looks at the ability of revenue and accrual types to identify simulated and actual income management. Irrespective of repeated criticisms of accrual models over the past 15 years (e. g., Dechow ou al. 1995; Bernard and Skinner 1996; Guay ou al. mil novecentos e noventa e seis; McNichols 2k; Thomas and Zhang 2150; Kothari ainsi que al. 2005), many studies have addressed and continue to address earnings managing using these models, most probably because few viable alternatives exist. you Accrual models have been criticized for rendering biased and noisy estimations of discretion, which calls into query the a conclusion from research that use all of them (Bernard and Skinner 1996). The objective of this study is always to evaluate a unique measure of revenue management—discretionary revenues—that permits very reliable and decisive inferences than existing designs.


one particular

For example , among 2005 and 2008, The Accounting Review, Journal of Accounting and Economics, and Journal of Accounting Research published in least 40 articles apply a way of measuring discretionary accruals.

This study is based on my dissertation titled ‘‘The Usage of Discretionary Earnings to Meet Income and Earnings Targets. '' I give thanks to my texte committee of Mary Barth (co-chair), Bill Beaver (co-chair), and Maureen McNichols, as well as Steven Kachelmeier (the elderly editor), Tag Trombley (the editor), two anonymous reviewers, Yonca Ertimur, Fabrizio Transbordador, Wayne Landsman, and workshop participants in Stanford School, University of California, La, The College or university of Chicago, Massachusetts Commence of Technology, Harvard Organization School, The University of North Carolina at Chapel Hill, the june 2006 Accounting Research Symposium at Brigham Fresh University, as well as the 2006 EAA Doctoral Colloquium for important comments and suggestions. Editor's note: Recognized by Tag Trombley.

Published: June 08

Accepted: July 2009

Printed Online: Drive 2010




The most common ways to estimating income management (i. e., the extent management exercises discernment over reported earnings) make use of aggregate accruals. However , many studies have got suggested focusing on one component of earnings, that has the potential to provide more specific estimates of discretion (McNichols and Wilson 1988; Bernard and Skinner 1996; Healy and Wahlen 1999; McNichols 2000). Modeling a single revenue component enables incorporating crucial factors exclusive to that aspect, thereby minimizing measurement problem. In addition , focusing on earnings pieces provides information into just how earnings will be managed. Income is an ideal component to examine as it is the largest revenue component for most firms and it is subject to discretion. Dechow and Schrand (2004, 42) realize that over per cent of SEC Accounting and Auditing Enforcement Releases entail misstated profits. Furthermore, earnings are the most usual...

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