Thesis ideas Beta V3.07

Most of these come from the Eli Bartov research seminar:

1. Comparison of probability a firm is likely to inflate earnings if they have independent directors or not. Probability to inflate earnings would be determined by doing a Jones cross sectional analysis of Total Accruals. (USA based as not enough data in Australia)

2. Do comapnies show a preference to manipulate earnings by managing accruals, after the departure of independent directors from the board? (Thanks P. Wells)

3. Is the variance of earnings from cashflow for companies in a given industry a predictor of… shareprice?/Risk?/Poor governance?

4 thoughts on “Thesis ideas Beta V3.07

  1. <>My life is inconsequential to this world.<>Actually, that’s where you’re wrong. Without the little ppl, there could be no big ppl.There’s no point in always lookin’ at the macro (the bigger picture) and dismissing the micro (the more immediate). There’s too much of the world to get lost in, and to me it’s the little things that matter and make a difference.

  2. In regards to topic 3, interestingly, according to Dechow (1994) there are a number of other factors which impacts on the variance between earnings and cashflow. This includes; The length of the operating cycle(Which determines cash requirements)The larger the magnitude of accruals, the larger the underlying gap between cashflow and stock return. (Because you need lots of accruals to bridge the gap between earnings and cashflow)The longer the measurement period (accounting period?) the closer the relation between cashflow and earnings and both of these with stock return.

  3. My life is inconsequential to this world. This Blog, unlike cheap copies (www.muchadoboutnothin.blogspot.com) is only about things that matter… 😛

  4. Well, I know zip about what you’re studying, too many numbers and, and… stuff for me to comprehend!But I thought I’d post a comment anyway, to bump up your stats and also ’cause I’m your sister and I wanna know what you’re doin’! Why don’t you post somethin’ about your adventures? Or is life to dull at the mo to document? Are you busy on the wkend? Might give you a bell, will prolly be home alone as Melz is off sailing, altho I’m not sure what our other visitors are doin'(Purdey and Bryan).Anyway, just wanted to say ‘hi’. Cheers for now.

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