Impact of financial data quality on models used to describe transitory earnings

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F18%3A43898294" target="_blank" >RIV/60076658:12510/18:43898294 - isvavai.cz</a>

Alternative codes found

RIV/61384399:31110/18:00053651

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Impact of financial data quality on models used to describe transitory earnings

Original language description

Business financial data are typically acquired from accounting that is characterized by accounting policies and methods. High-quality financial data enables to measure business performance and financial position and provide relevant information about assets, resources, costs, income and profit or loss on a true and fair view basis. The quality of financial data also depends on the conformity with reality and laws. Financial data should be a valuable information system and could be a valuable source of data for further analysis. This is mainly because of its accessibility, understandability and clarity, persuasiveness and a high truth value. Abnormal earnings are mostly transitory. Numerous models which have been employed to describe transitory earnings are especially autoregressive models and partial adjustment models. Autoregressive model is a representation of a type of random process and it specifies that the output variable depends linearly on its own previous values. The partial adjustment model has been used as a description of optimal behavior in the face of adjustment costs. The model requires a specification of how expectations are formed. The importance of expectations about transitory earnings is mainly important for asset pricing. Large part of national wealth concentrated in financial markets, income valuation has important role in formation of share prices, and income expectations also influence house prices and are used in macroeconomic models. This article is primarily concerned with impact of financial data quality into these models. Working with financial information required timely replenishment. Part of management professionalism and competence thus becomes the ability to quickly and efficiently acquire financial data, information and knowledge.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Economic and Social Development

ISBN

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ISSN

1849-7535

e-ISSN

neuvedeno

Number of pages

7

Pages from-to

746-752

Publisher name

Varazdin Development and Entrepreneurship Agency in cooperation with University North, Croatia Faculty of Management University of Warsaw, Poland

Place of publication

Warsaw, Poland

Event location

Rome

Event date

Mar 1, 2018

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

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