According to international research and gap in internal investigations, this research examined the relationship between some accounting earnings quality measures with overall economy in the years between 2002 and 2012. There are several measures for earnings quality. Earnings response coefficients and Earning Persistence are the most important of them. Because there are several criteria to measure the overall economy, in this article business cycles is considered as representative for the overall economy. Based on the results of the regression analysis and hypothesis testing, it was observed that the economic situation affects the investor’s response to accounting earning and this response is higher in recession than in expansion period. Also other findings show that overall economy affects the earnings persistence and this persistence is higher in expansion than in recession periods.
karami, G., & eftekhari, V. (2014). Review of Earnings Quality over the Business Cycle. Accounting and Auditing Review, 20(4), 93-112. doi: 10.22059/acctgrev.2014.36591
MLA
gholamreza karami; vahid eftekhari. "Review of Earnings Quality over the Business Cycle". Accounting and Auditing Review, 20, 4, 2014, 93-112. doi: 10.22059/acctgrev.2014.36591
HARVARD
karami, G., eftekhari, V. (2014). 'Review of Earnings Quality over the Business Cycle', Accounting and Auditing Review, 20(4), pp. 93-112. doi: 10.22059/acctgrev.2014.36591
VANCOUVER
karami, G., eftekhari, V. Review of Earnings Quality over the Business Cycle. Accounting and Auditing Review, 2014; 20(4): 93-112. doi: 10.22059/acctgrev.2014.36591
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