Underlying profits and financial reporting quality in Australia

Yiru Yang, Indra Abeysekera

Research output: Contribution to conferenceConference paper presented at Conference (not in Proceedings)peer-review

Abstract

This study examines the Australian Securities Exchange (ASX( 200 listed firms that reported underlying profits from the year 2009 to 2012 as to whether the underlying profits reflect financial reporting quality. We examine financial reporting quality using both accounting-based earnings quality and market-based quality. When underlying profits are related to earnings management, we find that the underlying profit is positively related to earnings management. The results of accounting-based earnings quality suggest that underlying profits reported as opportunistic, as can mislead investors. The underlying profits have not the relationship with current stock returns. The results suggest that although the underlying profit can mislead investors, it has not influenced the market-based valuation of firms.
Original languageEnglish
Pages124
Number of pages1
Publication statusPublished - 2014
Externally publishedYes
EventAccounting and Finance Association of Australia and New Zealand Conference - Gold Coast, Australia
Duration: 3 Jul 20165 Jul 2016

Conference

ConferenceAccounting and Finance Association of Australia and New Zealand Conference
Abbreviated titleAFAANZ
CountryAustralia
CityGold Coast
Period3/07/165/07/16

Fingerprint Dive into the research topics of 'Underlying profits and financial reporting quality in Australia'. Together they form a unique fingerprint.

Cite this