Earnings management has a negative effect on earnings quality, and may weaken the credibility of financial reporting.
He also combs balance sheets to gauge earnings quality.
"The earnings quality is slipping," Mr. Galvin concluded.
In addition, the results indicate that concentrated institutional ownership may negatively affect earnings quality.
The results demonstrate significant evidence of a positive association between institutional ownership and earnings quality.
His consulting focuses on equity valuation, fundamental analysis, earnings quality, investment management, and financial institutions.
Professor Nissim's research is primarily in the areas of equity valuation, fundamental analysis, and earnings quality.
The second set of results relates to how standard setting affects earnings quality.
The first includes results related to the definition, characteristics, and determinants of earnings quality.
But while actual earnings may be recovering, earnings quality remains iffy at certain companies.
They said earnings quality remained weak and liabilities had continued to rise.
