Buch, Englisch, 250 Seiten, HC runder Rücken kaschiert, Format (B × H): 153 mm x 216 mm, Gewicht: 463 g
Empirical Evidence from China
Buch, Englisch, 250 Seiten, HC runder Rücken kaschiert, Format (B × H): 153 mm x 216 mm, Gewicht: 463 g
ISBN: 978-3-030-21285-8
Verlag: Springer International Publishing
This book discusses the main reasons, at the strategic level, of the phenomenon of profit smoothing and summarizes this into three groups. Firstly, the functionality of this phenomenon for corporate management is to transmit to the external environment, and especially to external investors, a business reality devoid of crisis and imbalances. Secondly, this initial motivation engages basically the second. In fact, levelling the trend of profit from year to year, top management can reduce the risk perceived from the outsiders and as from the company’s insiders. Thirdly, this justification is related to the stability of the flow of dividends. Profit smoothing places great emphasis on the phenomenon of dividends. It should be note how in fact the profit smoothing is used to keep the expectations of shareholders profit from one period to another.
This book is focused on the profit smoothing and, in particular, how this phenomenon is established in developing-economies like the Chinese one, and will be of interest to academics, researchers, and students of corporate finance.
Zielgruppe
Research
Autoren/Hrsg.
Fachgebiete
- Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Unternehmensfinanzierung
- Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Entwicklungsökonomie & Emerging Markets
- Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen
- Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Finanzsektor & Finanzdienstleistungen: Allgemeines
Weitere Infos & Material
CONTENTS
1. Chapter 1. Theory of Profit
1.1 Profit in traditional argumentation way
1.1.1 Classical economist’s thinking
1.1.2 Arguments of the neoclassical economic view
1.1.2.1 Alfred Marshall. Short and long-term
1.1.2.2 Equilibrium characteristics
1.2 Economic governance of the firm
1.2.1 Distributive and productive logic
1.2.2 Governance structure and transaction cost
1.2.3 Definition model of the governance structure: Williamson’s View
1.2.4 Re-discussing Williamson’s Model
1.2.5 Markets Served
1.2.6 Interdependence Between Production and Commercialization Strategies
2. Chapter 2. Profit impact in Business Vision
2.1 The concept of profit in business vision
2.1.1 Profit and profitability
2.1.2 Profit as a business objective
2.1.3 Problems in maximizing profit as a business goal
2.1.4 Theoretical settings for the purpose of the enterprise
2.2 Profit as a negotiable income
2.2.1 Ricardian return, Paretian rent and monopolistic annuities
2.2.2 Entrepreneurial Rents Theory
2.2.3 Managerial Rents Model
2.2.4 Rent Appropriation Theory
2.3 From profit to value creation and sharing
2.3.1 Stakeholder views
2.3.2 Shareholder views
3. Chapter 3. Smoothing and Earnings Management Policies
3.1 Smoothing
3.1.1 Capital Market
3.1.1.1 Stock Market
3.1.1.2 Banking System
3.1.2 Governance
3.2 Real earnings management policies
3.2.1 Earnings management policies based on end-of-period valuations
3.2.2 Income smoothing policies
3.2.3 Big Bath earnings management
3.2.4 Income minimization and income maximization policies
3.2.5 Underlying reasons for the implementation of financial statement policies
4. Chapter 4. Towards a definition of Profit Smoothing
4.1 Income Smoothing
4.1.1 Approaches to the study of income smoothing
4.1.1.1 Classical Approach
4.1.1.2 Income Variability Approach
4.1.1.3 Dual Economy Approach
4.1.2 When Insiders know more than Outsiders
4.1.3 Income Smooth Attributes
4.1.4 Classification of Firms into Smoothers Categories
4.1.5 Accounting techniques for smoothing
4.1.5.1 Motivation of income smoothing
4.1.5.2 Gross Revenue Manipulation
4.1.5.3 Inventory Accounting
4.2 Profit Smoothing and Corporate Finance
4.2.1 Profit’s strategic reasons
4.2.2 Gordon’s model related to managerial goals
4.2.3 Culture of extra profit as a threat to the shareholder value
5. Chapter 5. Why China?
5.1 Introduction
5.2 China’s development: a powerful imperialist pole emerges
5.2.1 Chinese development
5.2.2 Development’s reasons
5.2.3 China in the world market
5.2.4 Economic and global issues
5.2.5 Political implications of Chinese development
5.3 Chinese Financial System
5.3.1 Importance of the financial structure
5.3.2 Gradual reform of the Chinese financial system
5.3.3 Evolution of the financial structure in China
5.3.4 Problems with the structure of the Chinese financial system
5.4 Corporate governance and development of Chinese Financial Economy
5.4.1 The “public-private” business structure in China
5.4.2 Conclusion on the Chinese system
6. Chapter 6. Empirical analysis of Profit Smoothing
6.1 Empirical study on accounting and financial data
6.2. Empirical Review
6.2.1 Profit Smoothing Hypothesis
6.2.2 Smoothing Criterion and detecting approaches
6.3 Methodology of research
6.3.1 Dataset and Data Collection
6.3.2 Variables
6.3.3 Model
6.4 Results
6.4.1 Descriptive analysis
6.4.2 ANOVA test: General effects
6.4.3 Profit Smoothing and sign of demand shock
6.4.4 Firms’ Size and Profit Smoothing
6.4.5 Profit smoothing: sectorial breakdown
7. Chapter 7. Management behavior and Profit Smoothing. Implications of the study
7.1 Country breakdown analysis
7.2 Summary of results and investigation on the phenomenon
7.3 Conclusive remarks on the Profit Smoothing phenomenon
