DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME?
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...
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doaj-f41518d17b0044bdbbb98869f25e12422020-11-25T02:49:38ZengUniversitas Gadjah MadaGadjah Mada International Journal of Business1411-11282338-72382013-06-016227529110.22146/gamaijb.55444870DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME?Slamet Sugiri0Faculty of Economics & Business, Universitas Gadjah MadaThe 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.https://jurnal.ugm.ac.id/gamaijb/article/view/5544earnings qualityincome smoothingmoderatingnonoperating incomepredictive content |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Slamet Sugiri |
spellingShingle |
Slamet Sugiri DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME? Gadjah Mada International Journal of Business earnings quality income smoothing moderating nonoperating income predictive content |
author_facet |
Slamet Sugiri |
author_sort |
Slamet Sugiri |
title |
DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME? |
title_short |
DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME? |
title_full |
DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME? |
title_fullStr |
DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME? |
title_full_unstemmed |
DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME? |
title_sort |
does earnings quality moderate the predictive content of nonoperating income? |
publisher |
Universitas Gadjah Mada |
series |
Gadjah Mada International Journal of Business |
issn |
1411-1128 2338-7238 |
publishDate |
2013-06-01 |
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. |
topic |
earnings quality income smoothing moderating nonoperating income predictive content |
url |
https://jurnal.ugm.ac.id/gamaijb/article/view/5544 |
work_keys_str_mv |
AT slametsugiri doesearningsqualitymoderatethepredictivecontentofnonoperatingincome |
_version_ |
1724742214435733504 |