이익관리 방법론에 대한 연구

We critically investigate two important methodological issues related to the estimation of discretionary accruals: the Jones models and the industry approach, both of which are considered the norms in the earnings management studies. We document that the original Jones models are the regression-through-the-origin (RTO) models. The RTO Jones models unduly overstate the significance of PPE and R-squares, produce inconsistent coefficients and non-zero mean discretionary accruals. If we include the intercept in the models, then they lack power. We show that the simulation approaches used in Dechow et al. (1995) and Kothari et al. (2005) have critical methodology issues. We also address the issue of using the industry approach as a sole approach for the estimation of discretionary accruals. We document that an alternative approach of using equal-size CFO portfolios - the CFO approach - outperforms the industry approach.