| Type of Document |
Dissertation |
| Author |
Barua, Abhijit
|
| Author's Email Address |
abarua1@lsu.edu |
| URN |
etd-03172006-101515 |
| Title |
Using the FASB's Qualitative Characteristics in Earnings Quality Measures |
| Degree |
Doctor of Philosophy (Ph.D.) |
| Department |
Accounting |
| Advisory Committee |
| Advisor Name |
Title |
| John Kenneth Reynolds |
Committee Chair |
| Jacquelyn Sue Moffit |
Committee Member |
| Ji-Chai Lin |
Committee Member |
| Joseph A. Legoria |
Committee Member |
| William M. Cready |
Committee Member |
| Jeffrey M. Gillespie |
Dean's Representative |
|
| Keywords |
- relevance and reliability
- accruals
- earnings quality
- fasb
- value relevance
- conceptual framework
|
| Date of Defense |
2006-02-07 |
| Availability |
unrestricted |
Abstract
In this study, I develop a measure of earnings quality by using qualitative characteristics of financial statement information specified in the Statement of Financial Accounting Concepts (SFAC) No. 2 (FASB 1980). I derive a summary measure of earnings quality by applying factor analysis on fifteen variables representing different components of two primary dimensions of earnings quality: relevance and reliability. I then test the validity of the earnings quality construct by examining whether the construct reflects decision usefulness that is operationalized in two ways: value relevance and cost of capital analyses. I provide empirical evidence suggesting that the earnings quality construct reflects decision usefulness to investors, which is consistent with the FASB's assertion. Finally, I explore the relative desirability of each dimension in light of decision usefulness of earnings information, and find that investors, in general, prefer the relevance to the reliability dimension of earnings.
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| Files |
| Filename |
Size |
Approximate Download Time
(Hours:Minutes:Seconds)
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56K Modem |
ISDN (64 Kb) |
ISDN (128 Kb) |
Higher-speed Access |
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Barua_dis.pdf |
398.07 Kb |
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00:00:56 |
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