Изглаждане на доходите, информативност и цени на акциите
Income smoothing, informativeness and stock prices

Author(s): Svetoslav Borisov
Contributor(s): Garabed Minassian (Editor), Stefan Vachkov (Editor)
Subject(s): Economy, Financial Markets
Published by: Е-литера Софт ЕООД
Keywords: Income smoothing; stock prices; investors' behavior; corporate governance;
Summary/Abstract: This book is devoted to a poorly developed topic in Bulgaria, related to the ability of corporate management to change the accounting of basic corporate results over several consecutive years in order to achieve a certain uniformity in the distribution, use and presentation of incomes. The topic is important for corporate practice, auditors, corporate counterparts, and company valuers (shareholders). In the book, theoretical and practical statements and positions related to the practice of smoothing the corporate income and its varied consequences, especially on the informativeness and stock prices, is systematized. Both the positive and the negative effects of income smoothing are analyzed. The problem is mainly related to the possibilities of designing the company's activity which is a factor in forming the behavior of investors. In this study are defined categories, absent from the Bulgarian financial practice, as accruals, informativeness and information uncertainty of income. In the book is analyzed the theoretical fundamentals of income smoothing and is outputted own definition for this process. On the basis of the theoretical relationships between income smoothing (use of discretionary accruals) and their informativeness is defined four research hypotheses. Their empirical verification is done in Chapter three. It is proved that the main motive for income smoothing of Bulgarian companies is opportunistic and is provided mechanisms for corporate governance that prevent the concealment of the actual financial position of the company and opportunism to minority shareholders.

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