Earnings Quality and Firm Valuation

International Financial Reporting Standards and New Directions in Earnings Management Pub Date : 2019-01-01 DOI:10.4018/978-1-5225-7817-8.CH001

L. Pimentel, Susana Jorge

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引用次数: 2

Abstract

The quality of earnings is a summary metric in firm performance evaluation and a focal question to assess the quality of accounting information. A high-quality earnings figure will reflect a firm's current operating performance, being a good indicator of future operating performance; it also accurately annuitizes the intrinsic value of the firm. The multidimensional nature of the earnings quality (EQ) concept has given form to a multiplicity of constructs and measures. This chapter offers a systematic literature review on EQ and its implication on firm value. On the one hand, it discusses the different existent definitions of EQ and the multidimensional nature of the concept; on the other hand, it highlights a “new” EQ perspective taking into account the virtuosities of the residual income model. An empirical model is proposed that reinterprets rebuilding the linear information dynamics in relation to market value added and captures, in a composite measure, the three-dimensional facet of the EQ concept: persistence, predictability, and informativeness of earnings.

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盈余质量与企业估值

盈余质量是企业绩效评价的总结性指标，是评价会计信息质量的焦点问题。高质量的盈利数据将反映企业当前的经营业绩，是未来经营业绩的良好指标;它还准确地将公司的内在价值年金化。盈余质量(EQ)概念的多维性已经形成了多种结构和措施。本章对情商及其对企业价值的影响进行了系统的文献综述。一方面，论述了现有的对情商的不同定义及其多维性;另一方面，它强调了考虑到剩余收入模型的精湛技艺的“新”情商视角。本文提出了一个经验模型，该模型重新解释了与市场增加值相关的线性信息动态的重建，并以一种复合测量方法捕捉了情商概念的三维方面:收益的持久性、可预测性和信息性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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International Financial Reporting Standards and New Directions in Earnings Management

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