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Top Executives¡¯ Ability and Earnings Quality: Evidence from the Chinese Capital Markets

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  • Han Li

Abstract

Earnings Quality can be influenced by the industry, the firm and the manager. Prior researches focus more on the industry and the firm. Currently, to measure the relationship between earnings quality and the managerial ability is interested by scholars. This paper tries to analyze the listed firms in Chinese Capital Markets and to measure the managerial ability in these firms by applying data envelopment analysis (DEA) and regression models. In this research, violation against accounting standards in financial reporting and DACC (Discretionary Accruals) are used to measure the earnings management. With the analysis, I find that earnings quality of these public firms is highly related with managerial ability in Chinese listed companies.

Suggested Citation

  • Han Li, 2014. "Top Executives¡¯ Ability and Earnings Quality: Evidence from the Chinese Capital Markets," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(2), pages 79-86, April.
    • Handle: RePEc:jfr:ijfr11:v:5:y:2014:i:2:p:79-86
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    References listed on IDEAS

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    Cited by:

    1. Nera Marinda Machdar & Adler Haymans Manurung D. R. M & Etty Murwaningsari, 2017. "The Effects of Earnings Quality, Conservatism, and Real Earnings Management on the Company's Performance and Information Asymmetry as a Moderating Variable," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 309-318.
    2. Fares Alsufy & Malik Abu Afifa & Mohammed Zakaria Soda, 2020. "Mediating Effects of Liquidity in the Relationship between Earnings Quality and Market Value of the Share Price: Evidence from Jordan," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 19(1), pages 17-32, June.
    3. Koray TUAN & Metin BORAK, 2020. "Earnings Management and Financial Performance: An Empirical Investigation of the Istanbul Stock Exchange," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(44).

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