جستجوی مقالات مرتبط با کلیدواژه "income smoothing" در نشریات گروه "حسابداری"

There are two views regarding income management. The first view aligns with good income management, whose arguments are based on blocked communication. According to this concept, managers have much information related to the company due to their expertise, but providing information directly to the public is very expensive. This prevents the direct presentation of information. In this view, income smoothing as one of the income management models can help the manager indirectly provide confidential information to users and reduce information asymmetry. However, the opposite point of view, whose arguments indicate bad income management, shows that managers use income smoothing for their personal interests, which aligns with opportunism. Managers with a high level of proficiency in improving company performance are typically expected to utilize smoothing to minimize information asymmetry. On the other hand, even managers with a lower level of ability in company performance may opt to employ smoothing techniques due to the required skill set and the potential negative consequences associated with poor smoothing decisions, such as financial abuses, damage to reputation, and job loss. Therefore, high-ability managers are generally expected to use their authority more effectively to disclose hidden information through smoothing techniques than their low-ability counterparts.Based on signaling theory and prior research on income smoothing and managerial ability, it is hypothesized that there is a relationship between managerial ability and income smoothing. Furthermore, it is expected that income smoothing, when associated with managerial ability, can enhance the informational value of income. Capable managers are expected to use income smoothing as a tool to communicate information to the market compared to weak managers; for this reason, they use more income smoothing, which leads to an increase in the informational content of income. Specifically, this study examines whether high-ability managers use income smoothing more than low-ability managers. It also examines whether smoothing by higher-ability managers increases the information of current earnings about future performance compared to earnings smoothing by lower-ability managers. 

The current research is applied in terms of purpose. Following the previous studies, ordinary least square regression correlation analysis was used to test the research hypotheses. The sample for this study comprises 791 firm-year observations from companies listed on the Tehran Stock Exchange from 2012 to 2018. 

Evidence shows that managerial ability has a positive relationship with earnings smoothing, and managers with high ability provide more forward-looking information through earnings smoothing, thereby increasing the information content of earnings about future performance. Indeed, smoothing by high-ability managers increases the ability of current earnings to predict future cash flows. In contrast, smoothing by managers with low ability reduces the ability of current earnings to predict future cash flows. This conflicting effect of smoothing by low-ability managers and reducing the informational content of earnings highlights the importance of considering management's ability to evaluate the usefulness of earnings smoothing. In the study, a common factor was used for smoothing at the company level based on three smoothing methods (1) the standard deviation of income divided by the standard deviation of operating cash flows; (2) the relationship between changes in accruals and changes in operating cash flows and (3) the correlation between changes in discretionary accruals and changes in earnings before management. MAScore has been used to measure managerial ability; MAScore is a measure of management team ability derived from data envelop analysis (DEA). 

Managers' ability can be considered one of the main factors in using income smoothing to communicate company information to the market. Capable managers use income smoothing to reduce information asymmetry and indirectly signal to the market. Managerial ability can be defined as the performance efficiency of managers compared to competitors in using the company's resources to create more Income. Evidence shows that capable managers use more income smoothing. Also, the evidence shows that capable managers use income smoothing to disclose the company's secret information to the market to reduce information asymmetry and indirectly signal to the market. High-ability managers have superior skills in evaluating the future performance of the firms under their management, so their smoothing of earnings increases the information content of earnings. High-ability managers smooth earnings to disclose information in current earnings. Therefore, they improve the information content of Incomes about future performance. These findings are consistent with the view that high-ability managers use their superior skills to predict their firms' economic prospects and use smoothing to transmit tacit information to the market. The results of this research can be useful for understanding the factors and benefits of income smoothing.

This study explaining the income smoothing in terms of financing and auditor's judgment in companies with different investment opportunities. The data of 320 companies have been analyzed using eviews econometric software. Through the median value in each investment opportunity criteria, the population was classified into two groups of companies with high and low investment opportunities. Then hypotheses were tested using unstructured estimation with (OLS) and (ARMA) methods. Findings shows in companies with high investment opportunities there is a positive relationship between income smoothing and financing that are separated by the MEQLDTA criteria but in the GROWTHPPE criteria was observed a negative relationship. In companies with low investment opportunities there isn't a relationship between income smoothing and financing that are separated by the MB criteria, but in PPEQGMEQLD criteria was observed a negative relationship. The explanatory variables of the auditor's judgment in both groups have an effect on the control of income smoothing. The findings can be used to identify companies with high investment opportunities. In order to achieve the expected return, it is recommended to pay attention to the auditor's judgment and experience in controlling income smoothing and financing method of companies. By comparing the determination coefficients and Durbin Watson's statistics, it was found that in companies with high investment opportunity, the MEQLDTA criteria and in companies with low investment opportunity, the MB criteria are optimal criterias for distinguishing investments opportunities.

The phenomenon of profit smoothing during the last half century as one of the most interesting and controversial topics in accounting and finance has attracted the attention of many researchers and from the perspective of accounting theory this phenomenon is an important and significant issue in the behavioral approach. Various factors affect profit smoothing. One of these factors that has a special effect is managerial ability. This research is a theoretical study on the role of managerial ability on soda smoothing which has been done as a review through review of existing literature and library studies. Previous research shows that managers with low ability are more likely than managers with high ability to make mistakes when making profit smoothing decisions. As a result, low-powered managers incur more smoothing costs than highly capable managers, resulting in a negative impact on the company's value and credibility. The findings also show that more capable managers are less inclined to actual profit smoothing and focus significantly on intentional profit smoothing. Therefore, managers with high ability in smoothing profits will have more ability and efficiency and will implement the selected strategies more effectively and take action towards intentional smoothing of profits.

The main purpose of this research is to consider the relationship between income smoothing and stock price performance (measured by return stock and abnormal returns stock) in financial crisis. Using Information in the financial statements of 71 the financial crisis companies and 71 the financial non-crisis companies during the period 2004 to 2014. Income smoothing was measured through correlation of a firm's change in discretionary accruals with earnings changes before in discretionary accruals. Criteria for the classification of financial crisis companies include: (1) three consecutive years of losses report, 2. dividend every year over the previous year more than 40% declined and 3. Article 141 of the Commercial Code. To test research hypothesis multivariate regression models is utilized. The result show that the financial non-crisis companies, there is significant negative relation between income smoothing with return stock and abnormal return stock, However, the financial crisis companies, there is significant positive relation between income smoothing and return stock, but there is no significant relation between income smoothing and abnormal return stock.

Investors, creditors and financial analysts are interested in having information on income smoothing in companies they are willing to invest in. Various local and international studies reveal that the investors in investment decisions prefer smooth and less fluctuating income. Managers attempt to report profit and its growth rate as smooth. Most researches show that financial statements and profit declaration has information content. This study is conducted for two aims, one investigating the impact of unexpected earnings on reaction of shareholders and another is impact of unexpected earnings on investors return. In present study earnings is taken as one of the most important variable in investors’ decision-making process, and seeks to see whether earnings have information content or not? If the earnings are the unexpected earnings arising from earnings smoothing incentives, by its declaration, does it lead to market response and achieving abnormal returns? The population of this paper consists of all companies listed on TSE. By filtering (systematic elimination) approach, 99 companies are selected during 2008 to 2012 as the research sample. For data analysis, regression panel data analysis is applied. The results of the study show that earnings can have information content and declaration of unexpected earnings that is done by earnings smoothing incentives by management causes that investors can interpret and understand the meaning of earnings information well. Thus, investors’ reliability to acquire declared earnings is increased and the increase of reliability of the investors leads to the increase of the impact of unexpected earnings on abnormal returns and stock price.