Smoothing Earnings and its Informativeness Cover Image

Изглаждане на доходите и тяхната информативност
Smoothing Earnings and its Informativeness

Author(s): Svetoslav Borisov
Subject(s): Business Economy / Management
Published by: Икономически университет - Варна
Keywords: smoothing earnings; informativeness; CKSS approach

Summary/Abstract: The consequence of smoothing earnings over its informativeness depends on the reasons for its practice on the segment of company management. If smoothing earnings is done for opportunistic purposes, it is expected to reduce its informativeness. In contrast, if management by smoothing earnings targets the transmission of their internal information about future corporate results is expected to increase its informativeness. By applying the approach of informativeness at the example of Tucker and Zarowin (2006), this survey examines how smoothing earnings influences its informativeness in a sample of Bulgarian public companies.

  • Issue Year: 61/2017
  • Issue No: 3
  • Page Range: 197-213
  • Page Count: 17
  • Language: Bulgarian