What are the Jones and modified Jones model of aggregate accruals in earnings management?
The original Jones model of non-discretionary accruals was developed by J. Jones in a 1991 paper in which she asserted that firms under the scope for import relief would engage in income-reducing earnings management.
It is a cross-sectional regression model:
Non-discretionary accruals = OLScoeff(1)(1/Assets) + OLScoeff(2)(chg in Rev) + OLScoeff(3)(gross PPE) + error of estimates
This original model has been refined many times to include the modified-Jones model which tweaks the second factor changing it from OLScoeff(2)(chg in Rev - chg in Rcvbls)
Both are among the several regression tests for earnings management but the limitation of all regression tests of EM is that (1) the power of the tests are generally low (partially explain variation if and when detected), and (2) they are all ex post measures (lagging).
Additional models include the industry model and the Healy model.
The earnings depends on what buisness you are working for and what you are modeling. If by earnings management models you are referring to earnings management research that has evolved with positive accounting theory, then it is important to note many models exists. Positive accounting theory (PAT) centers on the economic consequences of accounting choices. The broad stroke of the theory states that managers may be influenced to manipulate earnings away from "true earnings". In…
You are drawing unemployment and started a part time job can you quit it and still draw unemployment?
If you were a member of the management of a prison what would you do to ensure that the information in this study was used for institutional improvement?
Accessing Disk Management There are a few different ways to access Disk Management. Method 1 - Start > Control Panel > Performance and Maintenance > Administrative Tools. Double click Computer Management and then click Disk Management in the left hand column. Method 2 - By default, Administrative Tools is not shown on the Start Menu but if you have modified the Start Menu (by right clicking the Start button and selecting Properties > Customize) so…
dbms stands for data base management system whereas rdbms is relational data base management system. A Database Management System (DBMS) is collection of software programs which enable large, structured sets of data to be stored, modified, extracted and manipulated in different ways. Whereas Relational Database Managemet System (RDBMS) is a data structured in database tables, fields and records. Each RDBMS tables consist of database table rows.