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Are asymmetry measures relevant to analyze accounting thresholds?
[Les Indicateurs D'Asymétrie Sont- Ils Pertinents Pour Étudier Les Seuils Comptables ?]

Author

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  • Olivier Vidal

    (ENS Cachan - École normale supérieure - Cachan)

Abstract

Distributions of disclosed earnings are supposed to be smooth in the absence of earnings management. Irregularities have been observed around thresholds, suggesting earnings management. Recently, many studies have measured these irregularities in order to compare thresholds magnitude in space and over time. Most of these studies use asymmetry measures. The paper examines the theoretical limits of such indicators. The results of an empirical study tend to show that such indicators are myopic, and can drive to wrong interpretations.

Suggested Citation

  • Olivier Vidal, 2009. "Are asymmetry measures relevant to analyze accounting thresholds? [Les Indicateurs D'Asymétrie Sont- Ils Pertinents Pour Étudier Les Seuils Comptables ?]," Post-Print hal-02104099, HAL.
    • Handle: RePEc:hal:journl:hal-02104099
    Note: View the original document on HAL open archive server: https://hal.science/hal-02104099
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    References listed on IDEAS

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