The effect of financing changes on discretionary accruals estimation

Alves, Jorge; Moreira, José

Publication

The effect of financing changes on discretionary accruals estimation

2018Conference paper

dc.contributor.author	Alves, Jorge
dc.contributor.author	Moreira, José
dc.date.accessioned	2018-11-20T11:11:33Z
dc.date.available	2018-11-20T11:11:33Z
dc.date.issued	2018
dc.description.abstract	This study discusses the impact of financing changes (banks, shareholders loans, equity increases and other equity instruments) on accruals models, and discretionary accruals estimates. It pursues a threefold objective. Firstly, to show analytically how the occurrence of such changes affects discretionary accruals estimation. Secondly, to analyse empirically whether different accruals models - Jones (1991), Dechow and Dichev (2002), and McNichols (2002) - reflect in a similar way the impact of changes in corporate financing. Thirdly, compare for the Portuguese context the efficiency of the proposed methodology to Shan, Taylor and Walter (2013), in order to assess the relative performance of each one. Empirical evidence shows that the measurement error induced by not well-specified accruals models is affected by the sign of financing changes, being different for positive and negative changes; all models reflect in a similar way the impact of changes in corporate financing; and for the Portuguese context, the matched-firm approach on financing changes, intended to mitigate the problem caused by such changes on discretionary accruals, does not work well.	pt_PT
dc.description.version	info:eu-repo/semantics/publishedVersion	pt_PT
dc.identifier.citation	Alves, Jorge; Moreira, José (2018). The effect of financing changes on discretionary accruals estimation. In 31st IBIMA Conference. Milão- Itália. ISBN 978-0-9998551-0-2	pt_PT
dc.identifier.isbn	978-0-9998551-0-2
dc.identifier.uri	http://hdl.handle.net/10198/18214
dc.language.iso	eng	pt_PT
dc.peerreviewed	yes	pt_PT
dc.rights.uri	http://creativecommons.org/licenses/by/4.0/	pt_PT
dc.subject	Accruals models	pt_PT
dc.subject	Financing changes	pt_PT
dc.subject	SME	pt_PT
dc.subject	Portugal	pt_PT
dc.title	The effect of financing changes on discretionary accruals estimation	pt_PT
dc.type	conference paper
dspace.entity.type	Publication
oaire.citation.conferencePlace	Milão- Itália	pt_PT
oaire.citation.title	31st IBIMA Conference	pt_PT
person.familyName	Alves
person.givenName	Jorge
person.identifier.ciencia-id	2718-FF3E-8B6B
person.identifier.orcid	0000-0002-5168-8795
person.identifier.rid	W-4214-2017
person.identifier.scopus-author-id	57197042752
rcaap.rights	openAccess	pt_PT
rcaap.type	conferenceObject	pt_PT
relation.isAuthorOfPublication	21573167-7f60-4b0c-9777-f75aa3b53025
relation.isAuthorOfPublication.latestForDiscovery	21573167-7f60-4b0c-9777-f75aa3b53025