Question
Earnings Quality of the Qatar Exchange and the U.S. Stock Exchange: Empirical Evidence Summary and Conclusion This study investigates the residuals of discretionary accruals of
Earnings Quality of the Qatar Exchange and the U.S. Stock Exchange: Empirical Evidence
Summary and Conclusion This study investigates the residuals of discretionary accruals of listed firms in the Qatar Exchange and the U.S. stock market for the period 2004-2009. From the empirical results by three different accrual models, we find that Qatari firms in three industries (service, manufacturing and insurance) tend to manage earnings positively compared with those in the U.S. stock market. Our findings suggest that IFRS adoption and FIFO inventory method under inflationary environment by the Qatari firms resulted in greater residuals from all three accrual models than the U.S. stock market listed firms. The results have timely policy implication for the Qatar Exchange. The Qatari regulating body for financial reporting can use the results to enhance the quality of reported earnings of the Qatari firms to sustain (or improve) the marketability for Qatar Exchange-listed firms.
need understand this conclusion and write by my own ward.
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