Record Details

DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME?

Gadjah Mada International Journal of Business

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Field Value
 
Title DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME?
 
Creator Sugiri, Slamet
 
Subject earnings quality; income smoothing; moderating; nonoperating income; predictive content
 
Description The objective of this study is to empirically examine a hypothesis that earnings quality enhances the ability of nonoperating income to predict future operating cash flow. The magnitude of income smoothing index, measured by Eckel’s (1981) index formula, is used to capture a firm’s quality level of earnings. Higher index is assumed to represent higher level of earnings quality. A linear regression model is developed to test the hypothesis. The model parameters are estimated based on sixty-two manufacturing firms listed in the Jakarta Stock Exchange (JSX) up to the end of 1997. This study finds empirical evidence that supports the proposed hypothesis. That is, earnings quality enhances the predictive content of nonoperating income.
 
Publisher Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada
 
Date 2013-06-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journal.ugm.ac.id/gamaijb/article/view/5544
10.22146/gamaijb.5544
 
Source Gadjah Mada International Journal of Business; Vol 6, No 2 (2004): May-August; 275 - 291
2338-7238
1411-1128
 
Language eng
 
Relation http://journal.ugm.ac.id/gamaijb/article/view/5544/4515