Results of the Kruskal–Wallis test concerning earnings quality among the CEEplus index companies listed on the regular markets of the BVB, BUX, and WSE
| Earnings quality measure | Market | Mean Rank | Test statistics Kruskal–Wallis H | p-value |
|---|---|---|---|---|
| DACC | BVB | 39.88 | 1.400 | 0.496 |
| BUX | 48.42 | |||
| WSE | 39.69 | |||
| absDACC | BVB | 31.50 | 5.315 | 0.070 |
| BUX | 54.25 | |||
| WSE | 39.64 | |||
| PERS | BVB | 61.38 | 6.662 | 0.036 |
| BUX | 39.17 | |||
| WSE | 38.69 | |||
| PRED | BVB | 61.50 | 6.743 | 0.034 |
| BUX | 38.42 | |||
| WSE | 38.82 |
Descriptive statistics and frequency of positive/negative DACC in the CEEplus index companies, 2018–2020
| Year | % of observations | Minimum | Maximum | Mean | SD | Variance | |
|---|---|---|---|---|---|---|---|
| 2018 | <0 | 45.12 | −0.293 | 1.361 | 0.024 | 0.183 | 0.034 |
| >0 | 54.88 | ||||||
| 2019 | <0 | 50.00 | −0.468 | 0.346 | −0.005 | 0.098 | 0.010 |
| >0 | 50.00 | ||||||
| 2020 | <0 | 56.10 | −0.803 | 0.495 | −0.007 | 0.165 | 0.027 |
| >0 | 43.90 | ||||||
Descriptive statistics and tests of normality for individual earnings quality measures
| Earnings quality measure | Descriptive statistics | ||||
|---|---|---|---|---|---|
| Minimum | Maximum | Mean | SD | Variance | |
| DACC | −0.160 | 0.060 | −0.004 | 0.026 | 0.001 |
| PERS | −0.910 | 2.120 | 0.337 | 0.525 | 0.275 |
| PRED | 0.000 | 0.940 | 0.210 | 0.228 | 0.052 |
| Earnings quality measure | Tests of normality | ||||
| df | Kolmogorov–Smirnov | Shapiro–Wilk | |||
| DACC | 80 | 0.337 | 0.000 | 0.612 | 0.000 |
| PERS | 0.044 | 0.200 | 0.990 | 0.751 | |
| PRED | 0.203 | 0.000 | 0.837 | 0.000 | |
Descriptive statistics and the Wilcoxon Signed Ranks Test results measuring the absDACC in CEEplus index companies, 2018-2020
| Year | Minimum | Maximum | Mean | SD | Variance |
|---|---|---|---|---|---|
| 2018 | 0.000 | 1.361 | 0.091 | 0.161 | 0.026 |
| 2019 | 0.000 | 0.468 | 0.059 | 0.079 | 0.006 |
| 2020 | 0.000 | 0.803 | 0.094 | 0.134 | 0.018 |
| Ranks | Wilcoxon signed ranks test statistics | ||||
| Comparison | Mean rank | Sum of ranks | Z | p-value | |
| 2020–2018 | Negative ranks | 38.34 | 1,687.00 | −0.067 | 0.947 |
| Positive ranks | 45.16 | 1,716.00 | |||
| 2020–2019 | Negative ranks | 30.74 | 1,168.00 | −2.466 | 0.014 |
| Positive ranks | 50.80 | 2,235.00 | |||
| 2019–2018 | Negative ranks | 47.76 | 2,340.00 | −2.952 | 0.003 |
| Positive ranks | 32.21 | 1,063.00 | |||
Earnings quality in companies listed in individual stock exchanges from the CEE – a pairwise comparison using the U Mann–Whitney test
| Examined variable - earnings persistence | ||||
|---|---|---|---|---|
| Sample 1–Sample 2 | Mean rank | Test statistics Mann–Whitney U | Z | p-value |
| BVB–BUX | 14.13 | 19.00 | −2.238 | 0.025 |
| 8.08 | ||||
| BVB–WSE | 51.75 | 110.00 | −2.51 | 0.012 |
| 32.80 | ||||
| BUX–WSE | 37.58 | 359.00 | −0.104 | 0.917 |
| 36.89 | ||||
| Examined variable – earnings predictability | ||||
| Sample 1–Sample 2 | Mean rank | Test statistics Mann–Whitney U | Z | p-value |
| BVB–BUX | 14.00 | 20.00 | −2.161 | 0.030 |
| 8.17 | ||||
| BVB–WSE | 52.00 | 108.00 | −2.549 | 0.010 |
| 32.77 | ||||
| BUX–WSE | 36.75 | 363.00 | −0.045 | 0.964 |
| 37.05 | ||||
The characteristics of the research sample
| Basic sample – non-financial companies from the WSE, BVB, and BUX; indexed in CEEplus (high-share liquidity firms) | Additional sample – remaining nonfinancial firms from the regular markets of WSE, BVB, and BUX (lower share liquidity companies) |
| Verified hypothesis: H1, H4, H5, H6 | |
| Verified hypothesis: H2, H3 | |
| Total sample – 80 | Total sample – 291 |
| Companies from the WSE – 59 | Companies from the WSE – 215 |
| Companies from the BVB – 9 | Companies from the BVB – 45 |
| Companies from the BUX – 12 | Companies from the BUX – 31 |
Relationship between individual earnings quality measures outlined by Spearman’s rho coefficients
| Variables | DACC | absDACC | PERS | PRED |
|---|---|---|---|---|
| DACC | 1.000 | 0.006 | −0.067 | −0.063 |
| absDACC | 0.006 | 1.000 | −0.257* | −0.189 |
| PERS | −0.067 | −0.257* | 1.000 | 0.719** |
| PRED | −0.063 | −0.189 | 0.719** | 1.000 |
Results of the U Mann–Whitney test concerning earnings quality of CEEplus index companies and other nonfinancial enterprises listed on the WSE, BVB, and BUX stock exchanges
| Earnings quality measures | Market comparison | Mean rank | Test statistics Mann–Whitney U | Z | p-value |
|---|---|---|---|---|---|
| Comparison with Prime Market of WSE | |||||
| DACC | CEEplus | 151.23 | 8.632.50 | −0.280 | 0.781 |
| WSE | 148.15 | ||||
| absDACC | CEEplus | 146.07 | 8.575.00 | −0.363 | 0.717 |
| WSE | 150.12 | ||||
| PERS | CEEplus | 153.39 | 8.455.00 | −0.544 | 0.586 |
| WSE | 147.33 | ||||
| PRED | CEEplus | 154.84 | 8.336.00 | −0.724 | 0.471 |
| WSE | 146.77 | ||||
| Comparison with BVB | |||||
| DACC | CEEplus | 63.83 | 1.174.00 | −1.990 | 0.046 |
| BVB | 50.39 | ||||
| absDACC | CEEplus | 56.19 | 1.255.00 | −1.536 | 0.127 |
| BVB | 66.47 | ||||
| PERS | CEEplus | 60.40 | 1.448.00 | −0.412 | 0.678 |
| BVB | 57.61 | ||||
| PRED | CEEplus | 58.22 | 1.422.00 | −0.562 | 0.572 |
| BVB | 62.08 | ||||
| Comparison with BUX | |||||
| DACC | CEEplus | 49.43 | 714.00 | −0.409 | 0.683 |
| BUX | 52.42 | ||||
| absDACC | CEEplus | 47.10 | 528.00 | −2.061 | 0.039 |
| BUX | 62.21 | ||||
| PERS | CEEplus | 50.80 | 696.00 | −0.596 | 0.571 |
| BUX | 46.63 | ||||
| PRED | CEEplus | 49.53 | 722.00 | −0.338 | 0.736 |
| BUX | 52.00 | ||||