Earnings Management, Timeliness, and Corporate Information Systems
SSRN, ISSN: 1556-5068
2017
- 4,322Usage
- 29Captures
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Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Article Description
Does information system (IS) quality limit earnings management and contribute to financial reporting timeliness? While prior work has studied causes and constraints of earnings management and timeliness, the role of IS quality has not been considered. However, IS quality may facilitate and thus expedite financial statement preparation, and limit earnings management by, among other things, enabling the use of sophisticated software to more effectively prevent earnings manipulations and detect fraud indicators. Still, IS quality may also improve managers’ ability to manage and time the financial statement information due, for example, to increased information asymmetry between managers and external financial statement users. Using a broad sample that spans the 14-year period, 2001-2014, our primary findings demonstrate that IS quality is associated with reduced earnings management activities and improved financial reporting timeliness. These findings hold even after controlling for a multitude of variables demonstrated by prior research to explain earnings management and timeliness, and are robust to alternative definitions of the dependent and independent variables and estimation methods. Our findings may help financial statement users — outsiders (investors, financial analysts, and external auditors) and insiders (audit committees) — in assessing a firm’s earnings quality, and regulators in their effort to improve financial reporting quality and timeliness.
Bibliographic Details
http://www.scopus.com/inward/record.url?partnerID=HzOxMe3b&scp=85116455300&origin=inward; http://dx.doi.org/10.2139/ssrn.2989620; https://www.ssrn.com/abstract=2989620; https://dx.doi.org/10.2139/ssrn.2989620; https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2989620; https://ssrn.com/abstract=2989620
Elsevier BV
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