Managerial Ability and Earnings Quality

Authors

Peter Demerjian, Emory University
Melissa F. Lewis-Western, Brigham Young University - ProvoFollow
Baruch Lev, New York University
Sarah McVay, University of Utah

Keywords

managerial ability, managerial efficiency, earnings quality, accruals quality

Abstract

We examine the relation between managerial ability and earnings quality. We find that earnings quality is positively associated with managerial ability. Specifically, more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations. The results are consistent with the premise that managers can and do impact the quality of the judgments and estimates used to form earnings.

Original Publication Citation

Demerjian, P., M. Lewis, B. Lev, and S. McVay. 2013. “Managerial Ability and Earnings Quality”, Accounting Review 88 (2): 463–498.

BYU ScholarsArchive Citation

Demerjian, Peter; Lewis-Western, Melissa F.; Lev, Baruch; and McVay, Sarah, "Managerial Ability and Earnings Quality" (2011). Faculty Publications. 8510.
https://scholarsarchive.byu.edu/facpub/8510

Document Type

Peer-Reviewed Article

Publication Date

2011

Publisher

Accounting Review

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

Copyright Use Information

https://lib.byu.edu/about/copyright/