Relevance of Discrecionary Accruals in Ohlson Model: the Case of Mexico
This study applied the modified Jones´ model (1991) for selected companies of Mexico. This model aims to assess the impact of Discretionary Accrual Information (DAI) on financial reporting statements, in order to identify the value relevance of “earnings quality”. We applied methodological criteria...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Cognitione Foundation for the Dissemination of Knowledge and Science
2012-01-01
|
| Series: | Journal of Entrepreneurship, Management and Innovation |
| Subjects: | |
| Online Access: |
http://jemi.edu.pl/uploadedFiles/file/all-issues/vol8/issue3/JEMI_Vol_8_Issue_3_2012_Article_2.pdf
|
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850039686274220032 |
|---|---|
| author | Rocío Durán-Vázquez Arturo Lorenzo-Valdés Juan Manuel San Martín-Reyna |
| author_facet | Rocío Durán-Vázquez Arturo Lorenzo-Valdés Juan Manuel San Martín-Reyna |
| author_sort | Rocío Durán-Vázquez |
| collection | DOAJ |
| description | This study applied the modified Jones´ model (1991) for selected companies of Mexico. This model aims to assess the impact of Discretionary Accrual Information (DAI) on financial reporting statements, in order to identify the value relevance of “earnings quality”. We applied methodological criteria of Chung et al (2005) and Mukit & Iskandar (2009). We analyzed financial information of the 35 stock included in the Index of Prices and Quotations (IPC) of the Mexican Stock Exchange (BMV) for the period 2000 to 2011. 19 companies met the specifications of the model, for 48 quarters of information. The analysis was done in three parts: first, an analysis of the modified Jones´ model under panel data considerations by using fixed effects and adjustments of performing autocorrelation of order 1; second, a correlation analysis between the residuals of the modified Jones´ model and the return of stock price in 3 annual closings years of study: 2007, 2008 and 2009; and third, we incorporated this variable (DAI) in the Ohlson model (of the financial and corporate accounting literature) and we tested it with panel data analysis, under fixed effects, throughout the study period. |
| format | Article |
| id | doaj-art-e7adb7c086e146afaef5893be1de1792 |
| institution | DOAJ |
| issn | 2299-7326 |
| language | English |
| publishDate | 2012-01-01 |
| publisher | Cognitione Foundation for the Dissemination of Knowledge and Science |
| record_format | Article |
| series | Journal of Entrepreneurship, Management and Innovation |
| spelling | doaj-art-e7adb7c086e146afaef5893be1de17922025-08-20T02:56:16ZengCognitione Foundation for the Dissemination of Knowledge and ScienceJournal of Entrepreneurship, Management and Innovation2299-73262012-01-0183213410.7341/2012832Relevance of Discrecionary Accruals in Ohlson Model: the Case of MexicoRocío Durán-Vázquez0Arturo Lorenzo-Valdés1Juan Manuel San Martín-Reyna2 Department of Finance and Accounting, Universidad de las Américas Puebla Department of Finance and Accounting, Universidad de las Américas Puebla Department of Business Management, Universidad de las Américas Puebla This study applied the modified Jones´ model (1991) for selected companies of Mexico. This model aims to assess the impact of Discretionary Accrual Information (DAI) on financial reporting statements, in order to identify the value relevance of “earnings quality”. We applied methodological criteria of Chung et al (2005) and Mukit & Iskandar (2009). We analyzed financial information of the 35 stock included in the Index of Prices and Quotations (IPC) of the Mexican Stock Exchange (BMV) for the period 2000 to 2011. 19 companies met the specifications of the model, for 48 quarters of information. The analysis was done in three parts: first, an analysis of the modified Jones´ model under panel data considerations by using fixed effects and adjustments of performing autocorrelation of order 1; second, a correlation analysis between the residuals of the modified Jones´ model and the return of stock price in 3 annual closings years of study: 2007, 2008 and 2009; and third, we incorporated this variable (DAI) in the Ohlson model (of the financial and corporate accounting literature) and we tested it with panel data analysis, under fixed effects, throughout the study period. http://jemi.edu.pl/uploadedFiles/file/all-issues/vol8/issue3/JEMI_Vol_8_Issue_3_2012_Article_2.pdf financial marketsJones and Ohlson Modelseconometric estimation |
| spellingShingle | Rocío Durán-Vázquez Arturo Lorenzo-Valdés Juan Manuel San Martín-Reyna Relevance of Discrecionary Accruals in Ohlson Model: the Case of Mexico Journal of Entrepreneurship, Management and Innovation financial markets Jones and Ohlson Models econometric estimation |
| title | Relevance of Discrecionary Accruals in Ohlson Model: the Case of Mexico |
| title_full | Relevance of Discrecionary Accruals in Ohlson Model: the Case of Mexico |
| title_fullStr | Relevance of Discrecionary Accruals in Ohlson Model: the Case of Mexico |
| title_full_unstemmed | Relevance of Discrecionary Accruals in Ohlson Model: the Case of Mexico |
| title_short | Relevance of Discrecionary Accruals in Ohlson Model: the Case of Mexico |
| title_sort | relevance of discrecionary accruals in ohlson model the case of mexico |
| topic | financial markets Jones and Ohlson Models econometric estimation |
| url |
http://jemi.edu.pl/uploadedFiles/file/all-issues/vol8/issue3/JEMI_Vol_8_Issue_3_2012_Article_2.pdf
|
| work_keys_str_mv | AT rocioduranvazquez relevanceofdiscrecionaryaccrualsinohlsonmodelthecaseofmexico AT arturolorenzovaldes relevanceofdiscrecionaryaccrualsinohlsonmodelthecaseofmexico AT juanmanuelsanmartinreyna relevanceofdiscrecionaryaccrualsinohlsonmodelthecaseofmexico |