search query: @freeterm accruals / total: 8
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| Author: | Hribar, P. Collins, D.W. |
| Title: | Errors in estimating accruals: implications for empirical research |
| Journal: | Journal of Accounting Research
2002 : MAR, VOL. 40:1, p. 105-172 |
| Index terms: | Cash flow Measurement |
| Freeterms: | Accruals |
| Language: | eng |
| Abstract: | The impact of measuring accruals as the change in successive balance sheet accounts is examined as opposed to measuring accruals directly from the statement of cash flows. The primary finding is that studies using a balance sheet approach to test for earnings management are potentially contaminated by measurement error in accruals estimates. Particularly, if the partitioning variable used to indicate the presence of earnings management is correlated with the occurrence of mergers and acquisitions or discontinued operations, tests are biased and researchers are likely to erroneously conclude that earnings management exists when there is none. |
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