The impact of product market competition on earnings quality

被引:43
|
作者
Cheng, Peter [1 ]
Man, Paul [2 ]
Yi, Cheong H. [3 ]
机构
[1] Hong Kong Polytech Univ, Sch Accounting & Finance, Hunghom, Hong Kong, Peoples R China
[2] Caritas Inst Higher Educ, Dept Business Adm, Tseung Kwan O, Hong Kong, Peoples R China
[3] City Univ Hong Kong, Dept Accountancy, Kowloon Tong, Hong Kong, Peoples R China
来源
ACCOUNTING AND FINANCE | 2013年 / 53卷 / 01期
关键词
Earnings quality; Industry concentration; Product market competition; D80; L10; M40; M41; INDUSTRY CONCENTRATION; ANALYSTS INFORMATION; ASYMMETRIC TIMELINESS; DISCLOSURE; ACCRUALS; PERFORMANCE; PERSISTENCE; MANAGEMENT; COMPENSATION; VALUATION;
D O I
10.1111/j.1467-629X.2011.00457.x
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
The objective of this paper is to examine the impact of product market competition on earnings quality. Based on a sample from the US manufacturing sector for the period 19962005, we find consistent evidence showing a positive relation between product market competition and earnings quality. Additional tests also confirm a positive relation between product market competition and the precision of public and private information held by investors and analysts. We also provide evidence that firms competing in concentrated and heterogeneous industries are associated with a number of earnings attributes and information quality not shared by those competing in concentrated but homogeneous industries. These findings are consistent with the intuition that firms enjoying a monopolistic advantage tend to avoid the attention of their competitors and politicians by creating a more opaque information environment.
引用
收藏
页码:137 / 162
页数:26
相关论文
共 50 条
  • [1] On the nonlinear relation between product market competition and earnings quality
    Guo, Ying
    Jung, Boochun
    Yang, Yanhua Sunny
    [J]. ACCOUNTING AND BUSINESS RESEARCH, 2019, 49 (07) : 818 - 846
  • [2] THE PRODUCT MARKET COMPETITION, IMPACT ON ACCOUNTING EARNINGS COMPONENTS AND STOCK RETURNS
    Rodrigues Sobrinho, William Brasil
    Rodrigues, Herbert Simoes
    Silva de Oliveira, Isaac Gezer
    Feres de Almeida, Jose Elias
    [J]. REVISTA DE GESTAO FINANCAS E CONTABILIDADE, 2014, 4 (02): : 54 - 72
  • [3] Product Market Competition, Information and Earnings Management
    Markarian, Garen
    Santalo, Juan
    [J]. JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 2014, 41 (5-6) : 572 - 599
  • [4] Competitive pressure and managerial decisions Product market competition and earnings quality in China
    Majeed, Muhammad Ansar
    Zhang, Xian-zhi
    [J]. CHINESE MANAGEMENT STUDIES, 2016, 10 (03) : 559 - 592
  • [5] Product market competition and earnings exposure to productivity shocks
    Abdoh, Hussein
    [J]. ECONOMICS LETTERS, 2019, 174 : 31 - 34
  • [6] Product market competition and earnings management: the role of managerial ability
    Hasan, Md Mahmudul
    Hossain, Md Safayat
    Gotti, Giorgio
    [J]. REVIEW OF ACCOUNTING AND FINANCE, 2022, 21 (05) : 486 - 511
  • [7] A Study of the Relationship between Product Market Competition and Earnings Management
    Kordestani, Gholam Reza
    Mohammadi, Mohammad Reza
    [J]. 1ST INTERNATIONAL CONFERENCE ON APPLIED ECONOMICS AND BUSINESS, 2016, 36 : 266 - 273
  • [8] Product market competition, investor protection and analysts' earnings forecasts
    Kamarudin, Khairul Anuar
    Ismail, Wan Adibah Wan
    Chapple, Larelle
    Truong, Thu Phuong
    [J]. JOURNAL OF FINANCIAL REPORTING AND ACCOUNTING, 2023,
  • [9] Discussion of “The impact of product market competition on the quantity and quality of voluntary disclosures”
    Christo Karuna
    [J]. Review of Accounting Studies, 2010, 15 : 712 - 723
  • [10] Discussion of "The impact of product market competition on the quantity and quality of voluntary disclosures"
    Karuna, Christo
    [J]. REVIEW OF ACCOUNTING STUDIES, 2010, 15 (03) : 712 - 723