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Comparing abnormal accruals models: a non-parametric approach

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  • B. Gill de Albornoz Noguer
  • M. Illueca Munoz

Abstract

The purpose of this study is to compare the distribution of discretionary accruals produced by the Standard and Modified Jones models using a non-parametric approach. Evidence is provided that discretionary accruals produced by the two models have an almost identical distribution. Moreover, it is found that whether or not an intercept is included in the model produces more intra-distribution mobility than the use of the standard or the modified version of the model.

Suggested Citation

  • B. Gill de Albornoz Noguer & M. Illueca Munoz, 2004. "Comparing abnormal accruals models: a non-parametric approach," Applied Economics, Taylor & Francis Journals, vol. 36(13), pages 1455-1460.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:13:p:1455-1460
    DOI: 10.1080/0003684042000204449
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    References listed on IDEAS

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    1. Jones, Jj, 1991. "Earnings Management During Import Relief Investigations," Journal of Accounting Research, Wiley Blackwell, vol. 29(2), pages 193-228.
    2. Danny Quah, 1997. "Regional Convergence from Local Isolated Actions: II Conditioning," CEP Discussion Papers dp0379, Centre for Economic Performance, LSE.
    3. DeFond, Mark L. & Jiambalvo, James, 1994. "Debt covenant violation and manipulation of accruals," Journal of Accounting and Economics, Elsevier, vol. 17(1-2), pages 145-176, January.
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    Cited by:

    1. Antonio Cerqueira & Claudia Pereira, 2017. "Accruals quality, managers’ incentives and stock market reaction: evidence from Europe," Applied Economics, Taylor & Francis Journals, vol. 49(16), pages 1606-1626, April.
    2. Juan Manuel García Lara & Beatriz García Osma & Araceli Mora, 2005. "The Effect of Earnings Management on the Asymmetric Timeliness of Earnings," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(3‐4), pages 691-726, April.

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