Accounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return

Decision making in the economic affairs needs information. The shortage of information causes the ambiguity of the decision making process. The financials provide some of the needed information of this process. The perception of the earnings as the most important information source of the company wa...

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Autores principales:	Mehdi Sadidi, Ali Saghafi, Shahin Ahmadi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2011
Materias:	conservatism index earning quality earning quality index rate of return on operational assets rate of return Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/54eaa177fc294e66833ae077cf8dbb0c
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spelling	oai:doaj.org-article:54eaa177fc294e66833ae077cf8dbb0c2021-11-04T19:41:03ZAccounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return2008-89142476-292X10.22103/jak.2011.23https://doaj.org/article/54eaa177fc294e66833ae077cf8dbb0c2011-06-01T00:00:00Zhttps://jak.uk.ac.ir/article_23_6c5d5418bb822f7d75a919c6128ba643.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XDecision making in the economic affairs needs information. The shortage of information causes the ambiguity of the decision making process. The financials provide some of the needed information of this process. The perception of the earnings as the most important information source of the company was being supported by empirical studies. The mentioned researches have shown that the decision makers anchor on the accounting earnings more than any other benchmarks. The purpose of the following research is to help investors and other users to be able to assess the degree of the effects of the conservatism on the earning quality and ROI. The results show that the earning quality index presented based on the conservatism index has the ability to describe some of the differences between return on the operational assets and the current stock returns from the current year to the next year. In other word, economic entities that use the conservative procedures are able to change the earning quality with making some changes in the investments of the operational assets.Mehdi SadidiAli SaghafiShahin AhmadiShahid Bahonar University of Kermanarticleconservatism indexearning qualityearning quality indexrate of return on operational assetsrate of returnAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 2, Iss 6, Pp 11-24 (2011)
institution	DOAJ
collection	DOAJ
language	FA
topic	conservatism index earning quality earning quality index rate of return on operational assets rate of return Accounting. Bookkeeping HF5601-5689
spellingShingle	conservatism index earning quality earning quality index rate of return on operational assets rate of return Accounting. Bookkeeping HF5601-5689 Mehdi Sadidi Ali Saghafi Shahin Ahmadi Accounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return
description	Decision making in the economic affairs needs information. The shortage of information causes the ambiguity of the decision making process. The financials provide some of the needed information of this process. The perception of the earnings as the most important information source of the company was being supported by empirical studies. The mentioned researches have shown that the decision makers anchor on the accounting earnings more than any other benchmarks. The purpose of the following research is to help investors and other users to be able to assess the degree of the effects of the conservatism on the earning quality and ROI. The results show that the earning quality index presented based on the conservatism index has the ability to describe some of the differences between return on the operational assets and the current stock returns from the current year to the next year. In other word, economic entities that use the conservative procedures are able to change the earning quality with making some changes in the investments of the operational assets.
format	article
author	Mehdi Sadidi Ali Saghafi Shahin Ahmadi
author_facet	Mehdi Sadidi Ali Saghafi Shahin Ahmadi
author_sort	Mehdi Sadidi
title	Accounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return
title_short	Accounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return
title_full	Accounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return
title_fullStr	Accounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return
title_full_unstemmed	Accounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return
title_sort	accounting conservatism and the effects of earning quality on the return of assets and stock return
publisher	Shahid Bahonar University of Kerman
publishDate	2011
url	https://doaj.org/article/54eaa177fc294e66833ae077cf8dbb0c
work_keys_str_mv	AT mehdisadidi accountingconservatismandtheeffectsofearningqualityonthereturnofassetsandstockreturn AT alisaghafi accountingconservatismandtheeffectsofearningqualityonthereturnofassetsandstockreturn AT shahinahmadi accountingconservatismandtheeffectsofearningqualityonthereturnofassetsandstockreturn
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Accounting Conservatism and the Effects of Earning Quality on the Return of Assets and Stock Return

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