FINANCIAL LEVERAGE AND PREDICTABILITY OF EARNINGS

The negative effect of financial leverage on earnings predictability is more pronounced for longer predictive horizons. Moreover, high-leverage firms show ...

Financial leverage and predictability of earnings - MOspace Home

This study investigates whether firms' financial leverage affects earnings predictability. I posit and find that earnings predictability is negatively ...

The Impact of Financial Leverage on the Financial Performance of ...

How well a company can profit from its primary business activity is a gauge of its financial performance (Gofwan, 2022). The financial ...

The risks and rewards of leverage for your business - BerryDunn

Most businesses will explore increased leverage (taking on debt) to help finance operations at some point during their life cycle.

Unlocking the Degree of Financial Leverage - The Trading Analyst

It captures the manner in which EPS is affected by operating income changes occasioned by fixed-cost financing instruments such as debt. DFL enables the ...

Predictors of revenue shifting and expense shifting: Evidence from ...

Prior studies (for instance, DeFond and Jiambalvo, 1994, Ghosh and Moon, 2010) reported a significant positive association between financial leverage and ...

(PDF) The effect of leverage increases on earnings management

Leverage increase may lead to an interest payment (INT_EXP) increase and influence lower net income (Jelinek, 2007) . In this regard, interest ...

The effect of financial leverage on real and accrual-based earnings ...

We show that leverage levels and increases positively and significantly affect upward RM, with no significant effect on income-increasing AM.

Designing and explaining the profit predictability assessment Model ...

In leveraged companies, profitability can be achieved by analyzing and matching the return on equity to the amount of debt. If the shareholders' rights exceed ...

Investigate the Relationship between Financial Leverage and ...

that earnings have greater persistence and predictability than operating cash flows. They also find that discretionary accruals provide incremental ...

Predicting Future Earnings Changes Using Machine Learning and ...

financial information in earnings prediction, even in the presence of professional forecasters, ... financial leverage, net borrowing cost, return on net ...

The Influence of Leverage and Its Size on the Earnings Management

... earnings management. Keywords: operating leverage, financial leverage, firm size, earnings management. 1. Introduction. The financial statements are the ...

Reporting quality and financial leverage: Are qualitative ...

Firms with higher reporting quality have lower debt ratios, consistent with the prediction of the pecking-order theory and the agency theory. More interestingly ...

The effect of financial leverage on real and accrual-based earnings ...

Financial ratios, discriminate analysis and the prediction of corporate bankruptcy. Journal of Finance, 23 (4), 589–609. Arya, A., Glover, J. and Sunder, S ...

Degree of Operating Leverage, Earnings Properties, Reporting ...

These studies find that firm characteristics influence how the accounting system captures economic performance, shapes financial reporting incentives, and ...

LEVERAGE, FIRM FUNDAMENTALS AND EARNINGS ...

The relationship between accruals and firm size is also sigmoid in nature. The specific behavior is seen in Indian firms in which relationship ...

Income statement leverage and expected stock returns - IDEAS/RePEc

In light of the ongoing debate regarding the classic financial-leverage measures' stock returns predictability power, this study posits a new financial ...

An Examination of Hypotheses concerning Earnings Forecast Errors

prediction error is smaller the lower the financial leverage of the firm, the smaller the past variability of earnings, the larger the firm, and the more ...

A Company Is Making Good Use Of Financial Leverage If

A company is making good use of financial leverage if the return on stockholders equity is higher than the return on assets.

The Influence of Leverage and Profitability on Earnings Quality

... Leverage is defined as how much of a company's assets are financed by its debt (Murniati et al., 2018). The results of this research are ...