Journal article
Discretionary-accruals models and audit qualifications
Journal of Accounting and Economics, Vol.30(3), pp.421-452
2000
Abstract
The primary goal of this study is to evaluate the ability of the Cross-sectional Jones Model and the Cross-sectional Modified Jones Model to detect earnings management vis-à-vis their time-series counterparts by examining the association between discretionary accruals and audit qualifications. These two cross-sectional models have not been formally evaluated by prior research, and their use may offer certain advantages to investors and researchers over their time-series counterparts. A sample of 173 distinct firms with qualified audit reports and a matched-pair control sample with clean audit reports are used. Only the two cross-sectional models are consistently able to detect earnings management. One limitation of this study is that its findings merely indicate the superiority of the cross-sectional models vis-à-vis their time-series counterparts in an audit qualification setting, not validate either the former or the latter.
Details
- Title
- Discretionary-accruals models and audit qualifications
- Authors
- Eli Bartov (Author) - New York UniversityFerdinand A. Gul (Author) - City University of Hong KongJudy S.L. Tsui (Corresponding Author) - City University of Hong Kong
- Publication details
- Journal of Accounting and Economics, Vol.30(3), pp.421-452
- Publisher
- Elsevier BV
- DOI
- 10.1016/S0165-4101(01)00015-5
- ISSN
- 1879-1980
- Organisation Unit
- School of Business and Creative Industries; University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99678893802621
- Output Type
- Journal article
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