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Growth Quality Analysis

Authors: Raymond Wai Pong Yuen;

Growth Quality Analysis

Abstract

The Securities and Exchange Commission of the United States, in Dec 2012, had announced that a data-driven analytical model will be used to check the earnings quality of companies listed in the USA. The model employed is a mutant of the Modified Jones Model. There are a trove of researches on using Modified Jones Model to gauge the quality of earnings reported by the listed companies (Dechow, Sloan, Sweeney, 1995) (Jones, 1991) (Rusdi, Muhammad, Amirus, 2006) (Zaheer, Amanullah, Muhammad, 2006) (Cheng, Liu, Wayne, 2011).However, model to measure the quality of growth of listed companies is limited. This research purpose is using a data-driven analytical model to check the quality of growth of the listed companies in the Hong Kong stock market.Basically, the research finds that growth quality is affected by sales growth(plus), operating profit margin(minus), short term debt(minus) and current assets(plus) in the ex-ante way, and sales growth(minus), operating profit margin(minus), short term debt(plus) and current assets(minus) in the ex-post way in four separate analyses.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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