Quality of the Reported Earnings (RE) by U.S. Firins During The Pandeinic of 2020
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Authors
Hashemi, Shannon
Issue Date
2023-03-24
Type
Other
Language
en_US
Keywords
Pandemic , Annual Earnings , Return on Asset
Alternative Title
Abstract
This study investigates whether the year of the Pandemic, political costs and executive compensation affected the quality of the reported earnings by U.S. firms in the leisure and hospitality industry during COVID-19, as this industry was the most affected by the Pandemic. The pattern of changes in the discretionary accruals was used as a proxy for the quality of reported earnings . It was examined whether this pattern changed during the year of COVID-19. An empirical analysis was conducted using financial data and multiple regression analysis for pre-pandemic and Pandemic periods. Discretionary accrual was calculated and used as the dependent variable, and the pandemic year, political costs, and executive compensation were used as the independent variables applying control variables of size, leverage, and return on asset (ROA ). Results indicated a significant positive relationship between Pan, & PR, and DA CC. No effect detected from EC.
Description
UB RISE 2023, Department of Accounting, Trafz School of Business, University of Bridgeport.