Discussion of the Quality of Accruals and Earnings: The Role of Accrual Estimation Errors

By Maureen F. McNichols. 2002

1,585 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/d64bc8bc99fcc27bf3edb1096e0ffbaf0f9218a4

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Strategy and Management

Citations in the corpus

How Does Financial Reporting Quality Relate to Investment Efficiency (2009, positive): “The first measure, accruals quality (AQ), is derived from prior work (Dechow and Dichev, 2002; McNichols, 2002) and has been used extensively in the prior literature (e.g., Aboody et al., 2005; Francis et al., 2004, 2005; Core et al., 2008).”
Gender diversity and earnings management: the case of female directors with financial background (2021, methodology): “Extant studies also use a measure of earnings management based on Accruals Estimation Errors (AEE) measured using the expectation model proposed by McNichols (2002) as follows, where WCA is working capital accruals and OCF refers to cash flows from operations in years t, t − 1, and t + 1.”
Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter? (2018, methodology): “Under the main analysis, we used Accruals Estimation Errors (AEE) estimated based on McNichols’ (2002) model as a proxy for earnings management. Extant literature has also measured earnings management based on the adjusted-for-performance Jones’ (1991) model.”
Religiosity and Earnings Management: International Evidence from the Banking Industry (2014, neutral): “For example, McNichols (2002) questions the construct validity of a proxy based on aggregate accruals because of the complexity associated with modeling the estimation errors in aggregate accruals. focusing on a single accrual and a single industry.”
The Relative Importance of Firm and Country Characteristics for Earnings Quality around the World (2010, neutral): “model, as suggested by McNichols (2002), because this will reduce the number of observations.”
Direct and Indirect Effects of Internal Control Weaknesses on Accrual Quality: Evidence from a Unique Canadian Regulatory Setting (2011, neutral): “BSAQ The average of the absolute value of the residuals from the Dechow and Dichev model modified by McNichols (2002), Francis et al. (2005), and Ball and Shivakumar (2006).”
Financial Reporting Quality and Investment Efficiency (2006, positive): “I proxy for financial reporting quality using measures of accruals quality derived in prior work (Dechow and Dichev, 2002; McNichols, 2002) based on the idea that accruals are estimates of future cash flows, and earnings will be more representative of future cash flows when there is lower estimation”
Female executives and earnings management (2010, methodology): “McNichols’ (2002) modified version of the DD model simply augments the original model with the change in sales revenue and property, plant, and equipment as additional independent variables.”
The influence of corporate social responsibility on investment efficiency and innovation (2019, positive): “…reporting quality (FRQ) following Biddle et al. (2009), who use the accruals quality measure developed by Dechow and Dichev (2002) and expanded by McNichols (2002).20 Consistent with prior literature on investment efficiency (Biddle and Hilary 2006; Biddle et al. 2009), we include the following…”
Board Interlocks and Earnings Management Contagion (2013, background): “ McNichols 2002; Francis et al. 2005; Krishnan et al. 2008; Doyle et al. 2007).”