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Earnings quality research: Advances, challenges and future research

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  • DeFond, Mark L.

Abstract

This discussion makes several observations regarding the earnings quality research reviewed in Dechow, Ge and Schrand (2010) (DGS). I discuss some of the factors that led to the large growth in the earnings quality literature over the past two decades, and note a few of the important contributions from this literature. I also present what I view as several major challenges the literature faces as well as some avenues for future research. In addition, I discuss the difficulties in evaluating such a diverse body of literature, and comment on DGS's major conclusions.

Suggested Citation

  • DeFond, Mark L., 2010. "Earnings quality research: Advances, challenges and future research," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 402-409, December.
  • Handle: RePEc:eee:jaecon:v:50:y:2010:i:2-3:p:402-409
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ana Isabel Ramos Domingues & António de Melo da Costa Cerqueira & Elísio Fernando Moreira Brandão, 2016. "Idiosyncratic Volatility and Earnings Quality: Evidence from United Kingdom," FEP Working Papers 579, Universidade do Porto, Faculdade de Economia do Porto.
    2. Ozili, P K, 2016. "Earnings Quality and IFRS Research in Africa: Recent Evidence, Issues and Future Direction," MPRA Paper 73905, University Library of Munich, Germany.
    3. Ozili, Peterson K, 2017. "Bank Loan Loss Provisions Research: A Review," MPRA Paper 76495, University Library of Munich, Germany.
    4. Arif, Salman & Marshall, Nathan & Yohn, Teri Lombardi, 2016. "Understanding the relation between accruals and volatility: A real options-based investment approach," Journal of Accounting and Economics, Elsevier, vol. 62(1), pages 65-86.
    5. Humayun Kabir & Fawzi Laswad, 2015. "The Impact of Improvements in Institutional Oversight on IFRS Accrual Quality in Europe," Australian Accounting Review, CPA Australia, vol. 25(4), pages 428-444, December.
    6. Mary E. Barth & Javier Gomez-Biscarri & Ron Kasznik & Germán López-Espinosa, 2012. "Fair Value Accounting, Earnings Management and the use of Available-for-Sale Instruments by Bank Managers," Faculty Working Papers 05/12, School of Economics and Business Administration, University of Navarra.
    7. Tan, Youchao & Zhu, Zhenmei & Zeng, Cheng & Gao, Minghua, 2014. "Does external finance pressure affect corporate disclosure of Chinese non-state-owned enterprises?," International Review of Financial Analysis, Elsevier, vol. 36(C), pages 212-222.
    8. Wen-Ching Chang & Yahn-Shir Chen & Ling-Tai Lynette Chou & Chia-Hui Ko, 2016. "Audit Partner Disciplinary Actions and Financial Restatements," Abacus, Accounting Foundation, University of Sydney, vol. 52(2), pages 286-318, June.
    9. Domenico Campa & María del Mar Camacho Miñano, 2013. "Opportunistic earnings manipulation among bankrupt unlisted firms - How and when they do that -
      [Manipulación de resultados oportunista entre empresas en concurso no cotizadas – cómo y cuando lo ha
      ," Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales 13-05, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
    10. repec:kap:jfsres:v:51:y:2017:i:2:d:10.1007_s10693-016-0263-0 is not listed on IDEAS
    11. Alina Beattrice Vladu & Oriol Amat & Dan Dacian Cuzdriorean, 2014. "Truthfulness in accounting: How to discriminate accounting manipulators from non-manipulators," Economics Working Papers 1434, Department of Economics and Business, Universitat Pompeu Fabra.
    12. Kousenidis, Dimitrios V. & Ladas, Anestis C. & Negakis, Christos I., 2013. "The effects of the European debt crisis on earnings quality," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 351-362.
    13. repec:spr:manint:v:55:y:2015:i:6:d:10.1007_s11575-015-0254-7 is not listed on IDEAS

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