Quality of Provisions for Bad Debts and Earnings Information Contents

摘要：

This paper examines the relationship between quality of provisions for bad debts and earnings information contents,as well as in cremental information contents of cash flows.We divide actual provisions for bad debts into normal provisions and abnormal provisions and measure the quality of provisions for bad debts,based on both the cross-sectional and time-series basis.Empirical tests show its impacts on earnings infor mation contents,as well as on the incremental information content of cash flows.We find that quality of provisions for bad debts based on the time-series basis is significantly negatively related to earnings information content and positively related to incremental information contents of cash flows.The results supports that investors can adjust the use of accounting information in some extents,based on the quality of information.

关键词： Account receivables Provisions for bad debts Information contents Cash flows

作者: Zhan Lei

作者单位: School of Management,Zhongnan University of Economies and Law

会议类型: 国际会议

会议名称: 2008 Sino-Australia International Conference on Accounting and Finance(2008中澳会计与财务国际学术研讨会)

会议地点: 武汉

会议语种:英文

页码: 571-579

在线出版日期: 2008-10-31（万方平台首次上网日期，不代表论文的发表时间）