Article Details

Empirical Proxies of Earnings Quality: A Review | Original Article

Seema Mahajan*, in Journal of Advances and Scholarly Researches in Allied Education | Multidisciplinary Academic Research

ABSTRACT:

Quality of financial reporting has been discussed in the literature from three major perspectives, namely earnings management earnings quality, financial restatements, and timeliness, as well as their combined indices. However, the degree of earnings management, which captures the earnings quality of the reported earnings has been found to be one of representative ways to examine the quality of financial reporting in the literature. There is, however, no single definition of the term earnings quality. It is multidimensional. The present paper is an attempt to explore all the proxies of earnings quality used in extant research. The following discussion is therefore, not a summary of existing formal theory rather it reflects an accumulation of proxies of earnings quality taken from different studies.