This study aims to investigate the importance of earnings quality as a determinant of companies’ performance. It provides some empirical evidences from an emerging market, specifically from the Jordanian market. This study developed an econometric model for the effect of earnings quality on the companies’ performance using empirical evidence. The study employs a panel data analysis method by using a sample of all Jordanian industrial public shareholding companies listed on Amman Stock Exchange (ASE) during 2010-2018. The results reveal that Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS) as proxies of company’s performance are affected by the earnings quality. This provides the importance of positive earnings quality that eventually influences the companies’ performance. The results of this study suggest that the higher control level on the managers’ behavior and its outcome will have an effect on earnings quality, and thus the company’s performance increases. As well as, high relevance of accounting information will improve earnings quality, and thus earnings quality with the interaction factors of the company’s environment work on improving performance. As a conclusion, this study can work as a reference to assist standard setters, security analysts, regulators and other accounting-information users in appraising relation between the earnings quality and companies’ performance.

The study aims to investigate the impact level of earnings quality on firm value. The study has used data with 3,910 observations at listed firms on Vietnam Stock Exchange for the period from 2010 to 2018, and GLS regression analysis is employed in this research. Earnings quality is measured in the aspects of earnings management, earnings persistence, and timeliness of profitability. This study also considers a number of controlled variables that positively influence the firm's value such as firm size, fixed asset investment rate and dividend payout ratio. The results show that earnings quality is positively associated with firm value with having statistical significance. In contrast, some determinants negatively influence firm value such as financial leverage, ratio of market value to book value, and revenue growth. Determinants of firm size, the rate of investment in fixed assets, the rate of dividend payment positively affect the firm value. In contrast, determinants of financial leverage, revenue growth rate and market value to book value ratio are inversely related to firm value according to economic value, Tobin’s Q or Price. Based on the findings, some recommendations are proposed for investors, management and policy makers as well in the context of emerging countries including Vietnam.

This research is conducted to investigate the impact of provincial governance quality on earnings management in the context of Vietnam. The sample of this study was 52 construction materials companies listed on Vietnamese stock market for the period of 2015 - 2017. Consistent with previous research, this paper used discretionary accruals to obtain the discretionary abnormal accruals for measuring earnings management. We employ the data from nationwide surveys of provincial governance quality measured by the provincial competitiveness index. The multiple regression models were estimated to test the impact of the both provincial competitiveness index and ten sub-indices on earnings management of listed companies. This study provided the first empirical evidence for the impact of provincial institution quality and earnings management in Vietnam. The results showed that in the companies with loss, provincial competitiveness index has a negative effect on earnings management. The results also indicated that informal charges index; transparency index and proactivity index have statistical significant negative effect on earnings management. By unfolding the relation between aggregated index and several sub-indicators institution factors and earnings management our findings shed lights on how provincial governance environment can influence on firms level earnings management behavior in the case of Vietnam.

Dividend policy is an important business decision and is considered a channel to communicate a firm’s performance to shareholders. Given the empirical findings that earnings quality significantly affects financial analysts’ forecasting activities, it is predicted that higher earnings quality would positively influence forecast accuracy. Specifically, it is expected that financial analysts would forecast dividends more accurately for firms with higher earning quality. Unlike the research on financial analysts’ earnings forecasts was heavily conducted, there is little study about financial analysts’ dividend forecasts. This paper examines the effect of earnings quality on financial analysts’ dividend forecast accuracy. We use a sample of South Korean firms for the period of 2011–2015 for multivariate regression. Earnings quality is measured by accruals quality and performance-adjusted discretionary accruals followed by prior studies. We first compare the accuracy between dividend forecasts and earnings forecasts using t-test and Wilcoxon singed-rank test. It is confirmed that financial analysts’ dividend forecasts are more accurate than earnings forecasts in Korea. We find that financial analysts’ dividend forecasts are more accurate for firms with higher earnings quality. We also find that the result is still valid after controlling for the accuracy of financial analysts’ earnings forecasts. This confirms that earnings quality positively affects financial analysts’ dividend forecasts.