Earnings Variability Research Articles

Firming Up Inequality*

AbstractWe use a massive, matched employer-employee database for the United States to analyze the contribution of firms to the rise in earnings inequality from 1978 to 2013. We find that one-third of the rise in the variance of (log) earnings occurred within firms, whereas two-thirds of the rise occurred due to a rise in the dispersion of average earnings between firms. However, this rising between-firm variance is not accounted for by the firms themselves but by a widening gap between firms in the composition of their workers. This compositional change can be split into two roughly equal parts: high-wage workers became increasingly likely to work in high-wage firms (i.e., sorting increased), and high-wage workers became increasingly likely to work with each other (i.e., segregation rose). In contrast, we do not find a rise in the variance of firm-specific pay once we control for the worker composition in firms. Finally, we find that two-thirds of the rise in the within-firm variance of earnings occurred within mega (10,000+ employee) firms, which saw a particularly large increase in the variance of earnings compared with smaller firms.

PENGARUH EARNING PER SHARE (EPS) DAN PRICE BOOK VALUE (PBV) TERHADAP HARGA SAHAM PADA INDUSTRI RETAIL YANG TERDAFTAR DI BEI PERIODE 2013-2016

The purpose of this studyis to find out how the influence of earnings per share (EPS) and price book value (PBV) simultaneously and parcial to stock prices in retail industry listed on the Stock Exchange Indonesia period 2013-2016. The ojek this analysis is the retail industry listed on the stock exchange indonesia period 2013-2016. Sampel used in this research is as many as 8 retail industry listed on the Stock Exchange Indonesia period 2013-2016. The method used is qualitative and quantitative method. . The analytical tool used in this research is multiple linear regression analysis, the classical assumption test (normality, multicolinearity, hetoroscedasicity, and autocorrelation) and coefficient of determination. Based on the results of multiple linear regression analysis showed the equation Log Y= 2.244 + Log 0,528EPS Log 0,018PBV + e , with F test value of 5,153. Value t test for earning per share (EPS) of 3,159 and the value of T test for price book value (PBV) of 0,113. Rated R Square 26,2%, while the remaining 73,8% explained other factors beyond the study models. And the R value of 0,512. The conclusion of this research indicates that simultaneously independent variable earnings per share (EPS) and price book value (PBV) have an effect on stock price variable. The parcial price (PBV) has no significant effect on stock price dependent and earnings per share (EPS) have a significant effect on stock price variables.

The Effect of Murabahah, Mudharabah and Ijarah Earnings upon The Profit of Bank BRI Syariah, Branch Office Sukabumi

The purposes of this research are: 1) Analysing the development ofmurabahah, mudharabah and ijarah earnings at PT Bank BRI Syariah, Branch OfficeSukabumi; 2) Analysing the effect of murabahah, mudharabah and ijarah earningssimultaneously upon the profit of PT Bank BRI Syariah Branch Office Sukabumia: 3)Analysing the effect of murabahah, mudharabah and ijarah earnings partially uponthe profit of PT Bank BRI Syariah Branch Office Sukabumi. Research method hasapplied associative research method. Research data has applied financial data of PTBank BRI Syariah Branch Office Sukabumi for the periode of 2014 up to 2015 usingclassical assumption test, multiple regression, F test and T test. Result of theresearch has determined that overall murabahah, mudharabah and ijarah earningshave been increasing. In 2015 earnings increasing had reached 125 % more than theprevious year and the most contribution is given by murabahah earnings. Variable ofmurabahah earnings, mudharabah earnings and ijarah earnings simultaneously havebeen affecting positively and significantly the Profit. And partially murabahah andijarah earnings have positively and significantly affected the profit, nevertheless,variable of mudharabah earnings has not affected significantly the profit.

NILAI-NILAI FUNDAMENTAL DAN PENGARUHNYA TERHADAP BETA SAHAM SYARIAH PADA JAKARTA ISLAMIC INDEKS

The objective of this research is to examine influenced fundamental variables (leverage, earnings variability, accounting beta, earnings per share, price earnings ratio, price book value, dividend yield, and trading volume) on syariah stock beta as proxy of systematic risk. Samples used in this research are selected using purposive sampling from public companies of Jakarta Islamic Index (JII) from 2001-2005.The research tested hypotheses by using multiple regression analysis models. Based on model used, the results with F-test or ANOVA show that fundamental variable significant influence on syariah stock beta. The results also show that from the eight factors of fundamental variable assumed to influence on syariah stock beta, there are four factors which partially show significant influence consist of: leverage, earnings variability, price book value, and trading volume

Earnings Management and Earnings Quality: Theory and Evidence

ABSTRACT We study a model of earnings management and provide predictions about the time-series properties of earnings quality and reporting bias. We estimate the model to empirically separate two components of investor uncertainty: fundamental economic uncertainty, and information asymmetry between the manager and investors due to reporting noise. We find that (1) the null hypothesis of zero reporting bias is rejected; (2) the ratio of the variance of the noise introduced by the reporting process to the variance of earnings shocks is, on average, 45 percent; (3) the reporting noise plays a significantly less prominent role in valuation, due to the persistence of shocks to economic earnings; (4) the magnitude of investors' uncertainty created by reporting noise about firms' assets in place and about future earnings is similar; and (5) ignoring the possibility of reporting distortions would bias the estimates of variance and persistence of economic earnings.

Remuneração dos gestores hospitalares: evidência portuguesa

Public organizations are primarily engaged in providing efficient and effective services to society. As part of the strategy to ensure more efficiency in an organization, the managerial salary level is a relevant variable, and therefore needs to be scientifically addressed. Using a 2009-2013 database of managers’ salaries in the Portuguese public health sector, we address its evolution throughout the financial crisis occurring in Portugal. The findings suggest that the public managers were left relatively unscathed by the salary cuts that most of the public servants had to endure during the period, due mainly to the increase in their variable earnings.

PENGARUH GOOD CORPORATE GOVERNANCE DAN FINANCIAL DISTRESS TERHADAP MANAJEMEN LABA PADA PERUSAHAAN INDONESIA YANG MASUK DALAM ASEAN CORPORATE GOVERNANCE SCORECARD

The era of globalization requires companies that have go public have a competitive advantage and strong competitiveness to survive in the capital market. Companies are not only required to produce quality products for consumers, but also have good corporate governance (corporate governance), meaning the company's management policy should be able to ensure the sustainability of the business. Profit becomes one of the important factors for investors so managers often use profit as engineering targets. This profit engineering is known as earnings management. In addition to Good Corporate Governance there are other factors that influence managers to perform earnings management ie financial distress. This research is aimed to find out the influence of good corporate governance and financial distress to earnings management in Indonesian companies which are included in ASEAN corporate governance scorecard. The type of research used is quantitative and the research sample is determined based on purposive sampling. The analytical method used by using the analysis tool is multiple linear regression. The results showed that the coefficient of determination adjusted for 0.173 means 17.3% variable Earnings Management is influenced by Good Corporate Governance and Financial distress variables. While the remaining 82.7% influenced by other factor. Result of F test that simultaneously variable of Good Corporate Governance and Financial distress have significant influence to earnings management variable. The result of partial variable t test of Good Corporate Governance has no effect to Profit Management. While the Financial Distress has a positive and significant impact on Profit Management.

THE EFFECT OF MURABAHAH, MUDHARABAH AND IJARAH EARNINGS UPON THE PROFIT OF BANK BRI SYARIAH, BRANCH OFFICE SUKABUMI

The purposes of this research are: 1) Analysing the development of murabahah, mudharabah and ijarah earnings at PT Bank BRI Syariah, Branch Office Sukabumi; 2) Analysing the effect of murabahah, mudharabah and ijarah earnings simultaneously upon the profit of PT Bank BRI Syariah Branch Office Sukabumia: 3) Analysing the effect of murabahah, mudharabah and ijarah earnings partially upon the profit of PT Bank BRI Syariah Branch Office Sukabumi. Research method has applied associative research method. Research data has applied financial data of PT Bank BRI Syariah Branch Office Sukabumi for the periode of 2014 up to 2015 using classical assumption test, multiple regression, F test and T test. Result of the research has determined that overall murabahah, mudharabah and ijarah earnings have been increasing. In 2015 earnings increasing had reached 125 % more than the previous year and the most contribution is given by murabahah earnings. Variable of murabahah earnings, mudharabah earnings and ijarah earnings simultaneously have been affecting positively and significantly the Profit. And partially murabahah and ijarah earnings have positively and significantly affected the profit, nevertheless, variable of mudharabah earnings has not affected significantly the profit.Keywords : Murabahah earnings, Mudharabah earnings, Ijarah earnings, profit Bank BRI Syariah, Branch office Sukabumi.

The Effect on Earnings of the Applied Baccalaureate Degree

Objective: This study evaluates the postgraduate earnings of students with an applied baccalaureate (AB) degree compared to the earnings of students with the same associate degree but no baccalaureate degree. The research questions include the following: For those students who earn an AB degree, does it result in higher earnings than the associate degree? Does the earnings difference vary by field of study? Which student characteristics account for variation in earnings beyond the effect of the AB degree? Method: This study used propensity score weighted regression to examine the difference in earnings of AB degree and associate degree graduates in three programs—health, technology, and social science—at three different community and technical colleges in Washington state. Results: We find that the AB degree graduates have higher earnings than associate degree graduates in each of the three programs, although for certain programs the earnings increase is small enough to be explained by characteristics intrinsic to the student. Higher earnings are also associated to other student characteristics such as age, gender, earnings prior to enrollment, and academic proficiency, indicating a difference in economic benefit for some students. Contributions: The findings from this study contribute to the overall understanding of the complex relationship between level of education and earnings, specifically the impact on earnings of an AB above and beyond the associate degree. The analyses revealed evidence of a gender gap in earnings by program, which is an area that requires further study.

Income contingent student loan design: Lessons from around the world

The use of income contingent loans (ICLs) for Higher Education (HE) students is becoming increasingly prevalent around the world. Using a model of simulated lifetime earnings for graduates, in this paper we show that the impact of the design of ICLs on the magnitude and distribution of government subsidies is highly dependent on the institutional setting. In particular, the average debt level as a share of average earnings is a key determinant of the impact of various policy parameters. The variance of earnings within the graduate population is also shown to be a determinant of ICL taxpayer costs. This paper is the first comparative exercise of impact of the design of ICLs in different settings, and the findings are highly relevant to countries looking to implement or reform their student loan systems.

Individual Financial Returns from Quebec Pension Plan Reform Options: Analyzing Proposals to Renew a Second-Pillar Retirement Income Program

We use simulation methods and a detailed tax calculator to analyze the likely effects of two recent proposals aimed at reforming the Quebec Pension Plan (QPP): the federal proposal, eventually implemented throughout Canada, and the Quebec government's December 2016 proposal. Accounting for education-adjusted life expectancy, earnings variability over the course of a career, and their interactions with the tax code and retirement income system, we find that internal rates of return (IRRs) for new QPP contributions are similar under both reforms for individuals with lifetime average annual earnings of more than $40,000. Both reforms yield substantial IRRs for low-income individuals. Although the Quebec proposal offers higher IRRs for individuals earning less than $40,000, the federal proposal yields greater present value benefits for these same individuals. We show that if new QPP benefits were exempted from the Guaranteed Income Supplement (GIS) clawback, and provided that the working income tax benefit and GIS were not enhanced, the two reforms would yield similar IRRs for individuals with average earnings of more than $15,000. The QPP reform would thus better focus on the middle-income earners originally targeted by reform advocates.

Earnings Inequality and the Minimum Wage: Evidence from Brazil

We show that a rise in the minimum wage accounts for a large decline in earnings inequality in Brazil since 1994. To this end, we combine rich administrative and survey data with an equilibrium model of the Brazilian labor market. Our results imply that the minimum wage has far-reaching spillover effects on wages higher up in the distribution, accounting for one-third of the 25.9 log point fall in the variance of log earnings in Brazil since 1994. At the same time, the minimum wage’s effects on employment and output are muted by reallocation of workers toward more productive firms. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Financial Derivatives in Corporate Tax Aggressiveness

The investor’s attention on net income numbers without regard to the procedures used to generate them, has encourage management to carry out earnings management. Includes within earnings management is income smoothing. Income smoothing can be viewed in term of the reduction in earnings variability over a numbers of periods, or within a single period, as the movement toward unexpected level of reported earning. Objective of this study to examine the market reaction on earnings announcement due to the income smoothing. This study examine ninety nine companies which listed in Jakarta Stock Exchange at least since 1990. Market reaction is measured as cumulative abnormal return five days surrounding the companies’ earnings announcement date. Overall, the result of this study indicate that there is significant market reaction surrounding the companies’ earnings announcement date and these market reaction significantly difference between smoother companies and non-smoother companies. This study is hopes to give contribution to the literature, that income smoothing practice can regard as a signal to better prediction of future earnings by investors and a mean to decrease market reaction on companies’ earnings anouncement.

Modeling Endogenous Mobility in Earnings Determination

ABSTRACTWe evaluate the bias from endogenous job mobility in fixed-effects estimates of worker- and firm-specific earnings heterogeneity using longitudinally linked employer–employee data from the LEHD infrastructure file system of the U.S. Census Bureau. First, we propose two new residual diagnostic tests of the assumption that mobility is exogenous to unmodeled determinants of earnings. Both tests reject exogenous mobility. We relax exogenous mobility by modeling the matched data as an evolving bipartite graph using a Bayesian latent-type framework. Our results suggest that allowing endogenous mobility increases the variation in earnings explained by individual heterogeneity and reduces the proportion due to employer and match effects. To assess external validity, we match our estimates of the wage components to out-of-sample estimates of revenue per worker. The mobility-bias-corrected estimates attribute much more of the variation in revenue per worker to variation in match quality and worker quality than the uncorrected estimates. Supplementary materials for this article are available online.

Do women’s pre-birth relative wages moderate the parenthood effect on gender inequality in working hours?

Abstract Although young couples increasingly divide paid and ​unpaid work equally, the transition to parenthood is associated with the production of gender inequality. Given the rising prevalence of female breadwinner households in Europe, this paper assesses whether the parenthood effect on gender inequality in employment is counteracted in couples where women were the main income providers before the onset of family formation. Using longitudinal micro-data (1999–2010) from the Belgian Crossroads Bank for Social Security and the National Register, population-averaged logit models assess the effect of pre-birth relative earnings on parental employment strategies following the transition to parenthood. Results indicate that a female main earner constellation positively relates to egalitarian and female-oriented employment strategies. Although pre-birth relative earnings affect the magnitude of the negative relationship between parenthood and gender inequality in paid work, male-oriented parental employment strategies continue to occur most, even among female main earner couples. Hence, variation in pre-birth relative earnings cannot fully account for the rise in gender inequality in employment following the transition to parenthood, suggesting that cultural as well as structural factors limit parents to opt for an egalitarian employment division.

Pengaruh Disiplin Kerja, Komunikasi terhadap Kinerja Pegawai dengan Kepuasan Kerja Sebagai Variabel Intervenning

This research is to know and analyze about Work Discipline, and communication to job satisfaction and its implication to performance of field of Higher Education and High Education Office of West Java Province. The method used in this research is qualitative analysis. Methods of data collection is done by interview and questionnaire, while data processing used SPSS software version 23.00. Based on the results of research, it is found that work discipline, communication, job satisfaction and performance of employees at good level. In general, the independent variable working on job satisfaction is 0.479 or 47.90%, and communication variables to job satisfaction of 0.293 or 29.30%, and variable earnings on performance is equal to 0.783 or 78.30%. From the results of research conducted, then all the broad variables will have a significant effect on the performance of employees of Higher Education and Higher Education Department of West Java Province.

PENGARUH LABA PER LEMBAR SAHAM, DIVIDEN PER LEMBAR SAHAM DAN PENGUNGKIT KEUANGAN TERHADAP HARGA SAHAM PERUSAHAAN OTOMOTIF YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2006-2010

This study aimed to determine the effect of Earnings Per Share, Dividend Per Share and the Financial Leverage of the company's stock price on auto listed in Indonesia Stock Exchange 2006-2010 period either simultaneously or partially. The method used is the method of documentation, the data processing techniques using the Software Package for Social Sciences (SPSS) version 19.0 for windows evaluation. In conducting this study the authors using multiple linear regression analysis. The results either simultaneously or partially indicates that a significant difference between earnings per share, dividend per share and financial leverage on stock prices. This is evident from the calculated F and t is greater than F table (2.975) and t table (1,706). In addition, 69.3 % stock price able to be explained by the variable earnings per share, dividend per share and financial leverage. The remaining 30.7 % can be explained by other variables, such as Return On Assets (ROA), SBI Interest Rate, Price Earning Ratio (PER). The result is expected to be useful for the researchers themselves, the automotive company's management, as well as potential investors for further research. For automotive company's management should pay attention to earnings per share, dividend per share and the financial leverage that can be used to predict the rise or fall of stock prices is then to take the decision to invest.

Skills and Economic Inequality Across Race and Ethnicity in the United States: New Evidence on Wage Discrimination Using PIAAC

Using skill and earnings data from the OECD’s newly released Programme for the International Assessment of Adult Competencies (PIAAC) and decomposition methodology from literature on economic distributions across countries, this research provides new evidence about the limited extent to which levels of and rates of return to skills explain unequal wage distributions in subgroups defined by race and ethnicity in the United States. The specific importance of PIAAC skill levels and of rates of return to skill varies substantially between racial and ethnic minorities relative to Whites and across the upper and lower parts of the wage distribution, while unobservables remain critical. These findings about differential characteristics of wage spreads are in contrast to relatively high correlations between the means of wage distributions and the more comprehensively defined skill measures observed in PIAAC (in comparison to those that have been examined in past literature), and are robust to the inclusion of other observable human capital and socioeconomic determinants. Results have implications for understanding how formal and informal institutions, discrimination, and labor market compensation practices may translate differentially across racial and ethnic groups and into observed variation in earnings.

RANKING FIRMS USING REVEALED PREFERENCE.

This article estimates workers' preferences for firms by studying the structure of employer-to-employer transitions in U.S. administrative data. The article uses a tool from numerical linear algebra to measure the central tendency of worker flows, which is closely related to the ranking of firms revealed by workers' choices. There is evidence for compensating differentials when workers systematically move to lower-paying firms in a way that cannot be accounted for by layoffs or differences in recruiting intensity. The estimates suggest that compensating differentials account for over half of the firm component of the variance of earnings.

The Role of Hours Changes for the Increase in German Earnings Inequality

Using data from the German Structure of Earnings Survey (GSES), this paper studies the role of changes in working hours for the increase in male and female earnings inequality between 2001 and 2010. We provide both classic decompositions of the variance of log earnings into the variances of hours, wage rates and their covariance, and decompositions based on reweighting the conditional hours distribution. Depending on the inequality measure considered, our results suggest that between 10 and 30 percent of the increase in male earnings inequality and 37 to 47 percent of the increase in female earnings inequality can be explained by changes in working hours. In addition, a large part of the inequality increase can be accounted for by changes in the composition of person and firm characteristics.