Extending the Knowledge of Earnings Quality Using the AHP- an applied study

Abstract

Abstract: This paper seeks to understand earnings quality as interpreted by UAE investment analysts, and then tests this interpretation against its actual usage in analysts' processes in determining earnings quality. Earnings quality concluded that the importance of accounting quality and earnings, based on the information relating to the source of environmental earnings quality, is more important than it seems, and exerts a significant influence on the analysis and recommendations in analysts' prospective. The purpose of this study is to demonstrate how Analytical Hierarchy Process (AHP) can be employed to determine earnings quality. Overall, the results presented from the paramorphic model under AHP are meant to be descriptive for the decision process of nine investment analysts, equities investment analysts of fund manager and work for various institutional types. The study's results offer valuable insights into how a small population of investment analysts decided the relative importance of various earnings quality dimensions. Keywords: earnings quality, investment analysts, AHP, pair-wise comparison.