Methods and systems for classifying entities according to...

Details Methods and systems for classifying entities according to... Methods and systems for classifying entities according to...

2011-07-05

2011-07-05

Colbert, Ella (Department: 3694)

Data processing: financial, business practice, management, or co

Automated electrical financial or business practice or...

Finance

C705S03600T, C705S038000, C705S039000, C705S044000

Reexamination Certificate

active

07974894

ABSTRACT:
Methods and systems for classifying entities according to metrics of earnings quality are provided. At least one value corresponding to earnings quality of an entity is generated based on at least one metric of accruals, and the entity is classified according to the at least one value. For example, the entity may be classified according to the value as likely to have overstated its earnings and/or as likely to experience one or more business outcomes (e.g., a change in stock price, SEC enforcement action, and/or class-action lawsuit). As another example, multiple entities may be separated into various classes by ranking the entities according to their respective values. Such a ranking may provide useful heuristics regarding whether the entities have manipulated (e.g., overstated or understated) their earnings. Information about the classification may be made available for a fee and may allow parties to make better business and regulatory decisions.

REFERENCES:
patent: 6374358 (2002-04-01), Townsend
patent: 6877034 (2005-04-01), Machin et al.
patent: 7003503 (2006-02-01), Crosby et al.
patent: 2003/0110065 (2003-06-01), Twigge-Molecey
patent: 2004/0117240 (2004-06-01), Ness et al.
patent: 2004/0117283 (2004-06-01), Germack
patent: 2005/0021389 (2005-01-01), Dias et al.
Instructional case: Detecting earnings manipulation, Christine Wiedman, v14n1, pp. 145-176, Feb. 1999, ISSN: 0739-3172, Journal Code: AIIA.
Scott A. Richardson, “Discussion—A League of Their Own? Financial Analysts' Responses to Restatements and Corrective Disclosures”, Journal of Accounting Auditing & Finance, Vo. 18, No. 4, pp. 519-528 (Fall 2003) (11 pp.).
Scott A. Richardson et al., “Do Analysts and Auditors Use Information in Accruals”, Journal of Accounting Research, vol. 39, No. 1, pp. 45-74 (Jun. 2001) (30 pp.).
Richard G. Sloan, “Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings?”, The Accounting Review, Vo. 71, No. 3, pp. 289-315 (Jul. 1996) (27 pp.).
Scott A. Richardson, et al., “Capital Market Pressures and Earnings Management: The case of earnings restatements”, Sep. 2003 (37 pp.).
Scott A. Richardson, et al., “Accrual Reliability, Earnings Persistence and Stock Prices”, First Version: Jul. 2001, This version: Jan. 2004, (65 pp.).
Sanjeev Bhorjraj and Bhaskaran Swaminathan, “How Does the Corporate Bond Market Value Capital Investments and Accruals?”, First Draft: Aug. 2003, Current Draft: Dec. 2003 (31 pp.).
Advisen Press Release, “Advisen Predicts D&O Risk Through Examination of Accounting Practices”, Oct. 4, 2004 (2 pp.).
Advisen publication including “Introduction to Advisen's ATAcm”, around Oct. 2004 (5 pp.).

Affiliated with

Also associated with

Rating

Methods and systems for classifying entities according to... does not yet have a rating. At this time, there are no reviews or comments for this patent.

If you have personal experience with Methods and systems for classifying entities according to..., we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Methods and systems for classifying entities according to... will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFUS-PAI-O-2653803