Methodological Analysis of Accounting Quality – Empirical Approach to DeAngelo’s Model and the Modified Jones Model
Ervin Denich ()
Additional contact information
Ervin Denich: Lecturer, Budapest Business School,
Public Finance Quarterly, 2021, vol. 66, issue 2, 195 - 210
This study fills the gap in domestic research of accounting quality. The aim of this study is twofold: the firs goal is to systemise and summarise the models designed to measure the quality of financial statements. The second goal is to investigate the financial statements prepared by manufacturing companies acting in Baranya Country, from quality perspective, applying the DeAngelo (1986) model and the modifield Jones model (1995). Earnings quality is measured by the change in total accruals divided by total assets, considering a 4-years period of time between 2016 and 2019. Calculating the T-statistic, the amount of total accruals is a negative figure in the covered period. Consequently, it might suggests that managers make some decisions, which have a decreasing impact on earnings level of a company. Although the results of this study show some evidence of earnings management, further investigation is required in order to provide a more confident conclusion.
Keywords: quality; earnings quality; accounting quality; quality measurement models; t-statistic (search for similar items in EconPapers)
JEL-codes: M40 M41 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.penzugyiszemle.hu/upload/pdf/penzugyi_ ... 2/A_DenichE_21_2.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pfq:journl:v:66:y:2021:i:2:p:195-210
Access Statistics for this article
Public Finance Quarterly is currently edited by Erzsebet Nemeth
More articles in Public Finance Quarterly from State Audit Office of Hungary
Bibliographic data for series maintained by Pal Peter Kolozsi ( this e-mail address is bad, please contact ).