This study aims to examine the association between corporate diversification and accrual quality and test whether the diversification effect hypothesis, which predicts that measurement errors in accruals ultimately decline as firms become more diversified, or the measurement error hypothesis, which predicts that these errors increase, prevails.,This study modifies an existing empirical framework that uses the downward bias inherent in earnings persistence to measure accrual reliability and applies it to a sample of firms listed on the New York Stock Exchange, American Stock Exchange and NASDAQ from 1998 to 2016.,The results indicate a significantly positive association between firms’ diversification level and accrual reliability, which suggests that the diversification effect dominates the measurement errors effect, leading to an increase in firms’ accrual quality. The authors also found additional evidence suggesting that this positive association is more pronounced when a firm’s underlying operating activities among segments are less correlated, which is consistent with the fact that the diversification effect becomes more evident if a firm participates in diverse lines of business.,This study proposes that applying fewer sets of estimation methods or assumptions to a cluster of segments could yield more measurement errors in accruals. It fills a research gap by showing that the portfolio diversification effect mitigates the detrimental effect of measurement errors in consolidated financial reporting.

中文翻译：

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公司多元化是否会提高应计质量？

导致企业应计质量的提高。作者还发现其他证据表明，当公司在各细分市场之间的基本经营活动之间的相关性较低时，这种正向关联会更加明显，这与以下事实相符：如果公司参与不同的业务类别，多元化效应将变得更加明显。这项研究建议，将较少套估计方法或假设应用于一组细分可能会产生更多应计项目的计量误差。它通过显示投资组合的多元化效应减轻了合并财务报告中计量误差的不利影响，填补了研究空白。作者还发现其他证据表明，当公司在各细分市场之间的基本经营活动之间的相关性较低时，这种正向关联会更加明显，这与以下事实相符：如果公司参与不同的业务类别，多元化效应将变得更加明显。这项研究建议，将较少套估计方法或假设应用于一组细分可能会产生更多应计项目的计量误差。它通过显示投资组合的多元化效应减轻了合并财务报告中计量误差的不利影响，填补了研究空白。作者还发现其他证据表明，当公司在各细分市场之间的基本经营活动之间的相关性较低时，这种正向关联会更加明显，这与以下事实相符：如果公司参与不同的业务类别，多元化效应将变得更加明显。这项研究建议，将较少套估计方法或假设应用于一组细分市场，可能会产生更多应计项目中的计量误差。它通过显示投资组合的多元化效应减轻了合并财务报告中计量误差的不利影响，填补了研究空白。这项研究建议，将较少套估计方法或假设应用于一组细分市场，可能会产生更多应计项目中的计量误差。它通过显示投资组合的多元化效应减轻了合并财务报告中计量误差的不利影响，填补了研究空白。这项研究建议，将较少套估计方法或假设应用于一组细分市场，可能会产生更多应计项目中的计量误差。它通过显示投资组合的多元化效应减轻了合并财务报告中计量误差的不利影响，填补了研究空白。