PREDICTING EARNINGSUSING COST ACCOUNTS RATIOS: EVIDENCE FROM MANUFACTURING LISTED FIRMS
Journal Title: Annales Universitatis Apulensis series Oeconomica - Year 2013, Vol 15, Issue 2
Abstract
In the research fields of earnings forecast and the behavior of cost accounts there are many studies that indicate factors that affect earnings and factors that are affected by the cost accounts. Earnings affected by many factors as investments, cash flows, ROI, cost of capital, size, and others. Also in the area of earnings management crucial factors that affect earnings are inventories, accounts receivable, accounts payable, depreciation expense, accrued liabilities and others. Resent research in cost accounting field addresses the stickiness of CGA cost as an important factor that may be affect earnings or stock return in all industries except financial service industry. The stickiness of cost has investigated mostly in SGA cost because the manufacturing cost, inventory and cost of goods sold, change proportionately with activity levels that it means that are mostly variable factors. This empirical study investigates the impact of manufactory cost and SGA to operating income in manufacturing industry, using data from 2.128 listed firms, separated in three sectors according to sales level. The findings show that manufacturing cost and SGA cost affects the operating income differently in the three levels. This result disclosures the need for further investigation in separated industries, in different countries and finally to find a stable forecasting model using the cost accounts.
Authors and Affiliations
Sorros John
Keywords
Related Articles
- EP ID EP99197
- DOI -
- Views 99
- Downloads 0
THE EVALUATION OF INTELLECTUAL PROPERTY USING QUANTITATIVE METHODS
Currently the importance of intellectual property continues to rise. The market where the intellectual property assets are traded supports significant changes, which increase the importance of how assessment methods are...
EUROPEAN CRISIS’ EFFECTS UPON THE ROMANIAN ECONOMY
European Union is facing severe challenges from the financial crisis and the deep recession. The recession of the global economy affected the commercial and financial relations between European economies and between Euro...
THE USE OF STATISTICAL INFORMATION FOR FINANCIAL REPORTING PURPOSES - THE CASE OF FADN
Although the Romanian agriculture has a significant share in GDP, during various steps taken to adapt Romanian accounting to market economy needs, specific references to agriculture have not been made. Providing ge...
ONE STEP CLOSER TO CITY BRANDING THROUGH CULTURE: CONSUMER PREFERENCES FOR CULTURAL TOURISM SERVICES IN ALBA IULIA - CUSTOMIZATION ON NATIONAL MUSEUM OF UNIFICATION
This paper approaches aspects regarding consumer preferences for cultural tourism services and museum tours. The objectives of the current study aim to know the current interest for different types of tourism, to deter...
EUROPEAN PERSPECTIVES ON COMPETITIVENESS AND RESEARCH IN A KNOWLEDGE-BASED ECONOMY. WHERE DOES ROMANIA STAND?
In order to cope with the challenges of globalization Europe will have to focus on its creative and innovative capacity, creativity and innovation being crucial in meeting global challenges, this being the more evident g...