The Effect of Earning Quality on Idiosyncratic Return Volatility

This paper presents an empirical investigation to study the relationship between future profitability and abnormal accruals on selected firms from Tehran Stock Exchange (TSE). The study selects 223 firms from TSE market over the period 2007-2011. Using the regression analysis, the study shows there was no meaningful relationship between abnormal earnings and future profitability when the level of significance is five percent. There are also seven sub-hypotheses associated with the proposed study of this paper. The results indicate that while there were no meaningful relationship between firm size, ratio of book value to equity, capital expenditure, earnings quality, earning forecasted error and book value leverage on one side and future earnings, the study confirms a significance relationship between market leverage and future earnings.

This study evaluated the impact of earnings quality on abnormal returns on listed companies at Tehran Stock Exchange. In this study, quality of earnings and abnormal returns in the time domain between the years 2006 to 2011 companies listed in Tehran Stock Exchange will be tested. The present study was quasi-experimental and ex post facto and Based on actual market data and financial statements of listed companies in Tehran Stock Exchange was and using information from the financial statements of 132 listed companies in Tehran Stock Exchange and using multiple linear regression analysis, using the software SPSS16 results The results of this study indicate that the results of the test show that the first sub-hypothesis. The size of the abnormal returns between earnings quality is impressive. Findings the second sub-hypothesis testing shows that the growth rate of firms with abnormal returns between earnings quality influences.

Idiosyncratic Return Volatility, Earnings Quality and CEO Equity-Based Compensation

This study examines the effect of investment opportunity set (IOS), earnings persistence, and firm size on earnings quality with information asymmetry as a moderating variable. The primary impetus for this study was the number of instances of financial statement manipulation, which indicated that the firm's earnings quality was low and earnings information was subject to change. In 2020-2022, the sample consisted of as many as 15 infrastructure firms listed on the IDX, selected using purposive sampling. This study employed multiple linear regression analysis, and moderated regression techniques to analyze the data. The results of this study showed that earnings quality was unaffected by the investment opportunity set (IOS) and earnings persistence. Meanwhile, the firm size did affect the earnings quality. According to the results of moderated regression analysis (MRA), information asymmetry did not reduce the effect of investment opportunity set (IOS), earnings persistence, and firm size on earnings quality.

Secrecy and Mandatory IFRS Adoption on Earnings Quality

The purpose of this study is to examine and analyze the effect of liquidity, firm size, and accounting conservatism on earnings quality by using profitability as a moderating variable. The population in this study are mining companies listed on the Indonesia Stock Exchange for the period 2017-2019. Using purposive sampling technique, as much 62 firm observations were gathered and used for the test of hypothesis. The analysis technique used is descriptive statistical analysis and inferential statistical analysis with moderated analysis regression interaction test as the moderating regression analysis. The results show that accounting conservatism has a positive effect on earnings quality. On the contrary, liquidity and firm size have no effect on earnings quality. In addition, profitability does not moderate the relationship between liquidity and earnings quality, profitability does not moderate the relationship between firm size and earnings quality, but profitability weakens the relationship between accounting conservatism and earnings quality.

The research that the researcher conducted has the intention of testing the effect of managerial ownership, institutional ownership, audit committee, the proportion of independent commissioners, and firm size on earnings quality. The intervening variable in this study is earnings management with empirical studies on companies that are included in the IDX list for the 2016-2020 period. There are 193 companies that the researchers made as the population in the research that the researchers held. Purposive sampling is a sampling technique used by researchers and obtained as many as 28 companies as samples. The research carried out by researchers utilizes secondary data taken from annual reports obtained from the Indonesia Stock Exchange or company websites in the 2016-2020 period. The model used in the research is panel data regression using the Eviews 9 application. The results of the research are managerial ownership, institutional ownership, audit committee, and the proportion of independent commissioners simultaneously giving effect to earnings management and earnings quality. In addition, all variables have a significant partial effect on earnings management and earnings quality, except for the proportion of independent commissioners that does not have a significant effect on earnings quality. The mechanism of Good Corporate Governance in this study has a significant effect on earnings quality with earnings management as an intervening variable. However, firm size does not have a significant effect on earnings quality with earnings management as an intervening variable.

This study aims to examine the effect of capital structure, firm size and profitability on earnings quality. The sample used in this study is food and beverage companies listed on the IDX for the 2019-2020 period. The population of this study amounted to 26 food and beverage companies, using purporsive sampling technique and an observation period of 2 years so that 40 samples of observation data were obtained. The data needed in this study were obtained from the publication of financial statements in the Indonesia Stock Exchange. The data analysis method used to test the hypothesis is multiple linear regression analysis. The analysis was carried out using SPSS version 25. The results of this study indicate that capital structure has no effect on earnings quality. Firm size has a positive and significant effect on earnings quality. Profitability has no effect on earnings quality.

This research investigates the impact of firm size, foreign ownership, inflation, profit growth, and the Indonesia Country Risk Premium on the Earnings quality of transportation sector firms listed on the Indonesia Stock Exchange (IDX) between 2020 and 2022. The study employed a purposive sampling method, selecting 84 firms that met the established criteria for analysis. Using multiple linear regression, the findings reveal that firm size, foreign ownership, inflation, and profit growth significantly influence Earnings quality, with larger firms and those with higher foreign ownership demonstrating better Earnings quality. Contrary to expectations, inflation was positively correlated with Earnings quality, possibly reflecting sector-specific dynamics in Indonesia. Additionally, profit growth was found to have a positive effect on Earnings quality, emphasizing the importance of growth strategies for enhancing financial performance. However, the Indonesia Country Risk Premium was not found to have a statistically significant impact on Earnings quality, suggesting that external country risk factors were not key determinants during the study period. These results indicate that transportation companies should prioritize optimizing internal factors such as firm size and profit growth, while also carefully managing external factors like inflation and foreign ownership in their strategic planning. Despite the non-significant role of the Indonesia Country Risk Premium, it is still important for firms to stay vigilant regarding potential macroeconomic risks. The study further highlights the value of investing in sustainable infrastructure to improve operational efficiency and long-term resilience. By incorporating these insights, transportation companies on the IDX can better position themselves to remain adaptive and competitive in an ever-changing economic environment.

This study is investigating the relationship between conditional and unconditional conservatism on earnings quality for the companies listed in Tehran Stock Exchange for the time era of 2006 to 2011 This study uses Basu model as a proxy for time asymmetry of earnings. Variable DR*RET is positive (B3>0) and is significant in 0.05.so, as Basu (1997) says, this efficient is proxy for time asymmetry and use to calculate conservatism. This show that study sample is conservatism. Coefficient of earnings quality (CFO/NI (is -0.000217. This finding show that there is a significant relationship between conditional conservatism and earnings quality. After entering MTB, coefficient of earnings quality (CFO/NI (is 0.000215. this finding show that there is a significant relationship between unconditional conservatism and earnings quality.

Objective: Economic decisions of depositors and borrowers in the banking industry are made based on the quantity and quality of their information. The information of these banks, including earnings, must have the necessary quality characteristics in order to distribute financial resources among the members of the society in the best way along the decisions of information users. Therefore, the purpose of this study is to investigate the interaction between earning quality and information asymmetry in the banking industry.Method: To achieve the purpose of the research, data of 11 banks listed on the Tehran Stock Exchange and Iran of OTC during a period of 11 years for the years 2007-2018 using the Rah Avard Novin, financial statements and the official site of the Tehran Stock Exchange was collected and analyzed using the structural equation method in the Smart PLS software platform and the two-way Granger causality test. Results: The findings showed that information asymmetry in the banking industry is high and their earning quality is low. Information asymmetry has a negative effect on earning quality. On the other hand, if the quality of earning is low, it will increase information asymmetry. As a result, earnings quality also has a negative effect on information asymmetry. Finally, bilaterally, these two variables are the cause and effect of each other and have interaction. Conclusion: In the banking industry, the information gap is high, so we argue that the manager can present the amount of declared earning in the financial statements differently from the actual earning.

The present study is concerned about the relationship between earnings quality and audit quality of audit firms to figure out whether the earnings quality of firms audited by larger audit firms is more than that of the smaller firms or the earnings quality of firms audited by longer tenure audit firms is more than that of the shorter tenure firms or not.The study's hypotheses were tested using a sample of 129 year-company listed on the Tehran Stock Exchange during 2012-2016 and by using the multiple regression pattern based on the data integration technique. Hence, the multivariable regression model is used for testing the hypotheses.The obtained results show that the earnings quality of firms audited by small audit firms outweighs that of the large audit firms. Moreover, the findings indicate that those firms audited by longer tenure audit firms, compared with those audited by shorter tenure audit firms, enjoy a better earnings quality.

Women’s representation on corporate boards has recently drawn increasing attention. This study aims to investigate the moderator role of females on board of directors on the relationship between earnings quality (EQ) and stock price informativeness. This research uses secondary data obtained from the Sahra database that span 158 active firms on the Tehran Stock Exchange from 2017 to 2021. Findings indicated that the presence of female directors on the board had a favorable impact on the correlation between EQ and pricing informativeness. That is, firms with more female board members have a greater association between EQ and pricing informativeness. The practical application of this research relates to female CEOs’ monitoring roles, thereby enhancing the quality of financial reporting.

The research aims to obtain empirical evidence about factors that affect earnings quality, particularly, the influence of auditor size, audit tenure, audit specialization, firm size, audit committee, leverage, investment opportunity set (IOS), growth opportunity, managerial ownership, and institutional ownership on earnings quality. The population used in this research are all manufacturing companies that are listed in Indonesia Stock Exchange from 2014-2020 and use purposive sampling as the sampling method. Through this method, forty-five (45) manufacturing companies fit with the sampling criteria and chosen as the sample with a total of 135 data. This research uses multiple regression method to analyse the data. The results of multiple regressions show that auditor size, audit tenure, audit specialization, firm size, and leverage have an effect on earnings quality, while the other 5 variables, which are investment opportunity set (IOS), growth opportunity, managerial ownership, and institutional ownership has no effect on earnings quality. Audit specialization has positive effect on earnings quality as those auditors will have deeper understanding regarding the industry, enabling them to better ensure earnings is of high quality.

Family Firms and Earnings Quality: Evidence from Top 500 ASX Companies