Effects of Positive Accounting Theory hypotheses on earnings quality
Name: JULIANA MOLINA QUEIROZ
Publication date: 17/11/2015
Advisor:
Name |
Role |
|---|---|
| JOSE ELIAS FERES DE ALMEIDA | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| GABRIEL MOREIRA CAMPOS | Internal Examiner * |
| JOSE ELIAS FERES DE ALMEIDA | Advisor * |
Summary: This study aimed to investigate what are the effects of the Positive Accounting Theory (PAT)
on the Quality of Accounting Information, which may be determined by the measures of value
relevance, timeliness, conditional conservatism and earnings management of the information
available on the Financial Statements. The sample was composed by observations of
companies with minimum liquidity of 0,001 of the shares traded at BM&FBOVESPA, during
the period of 2010 and 2014, collected from the Comdinheiro tool. The observations were
divided into groups whose managers may suffer similar influence of the factors described in
Hypotheses TPC and dummies were created for these groups. In order to analyze and compare
companies of groups whose managers may suffer a higher or lesser influence were used two
analyzes regressions on Panel Data with robust standard errors and grouping by firm. Firstly,
it was run the original models of each group, separately. Afterwards, it was analysed the
models with dummies interactions of the groups with originals variables of the relevance
models, conditional conservatism and result management. The results showed that the effects
of the assumptions of Positive Accounting Theory in Information Quality metrics are not
uniform and vary according to the controls used. However, it is possible to check that there
may exist influence on Accounting Relevance Information by the Bonus Plan Hypothesis and
Size Hypothesis; on the Timeliness by the Size Hypothesis; on the Conditional Conservatism
by the Bonus Plan Hypothesis and, on the Results Management, by all PAT Hypothesis
analysed in this study.
