Statistical computation of Boltzmann entropy and estimation of the optimal probability density function from statistical sample

In this work, we investigate the statistical computation of the Boltzmann entropy of statistical samples. For this purpose, we use both histogram and kernel function to estimate the probability density function of statistical samples. We find that, due to coarse-graining, the entropy is a monotonic increasing function of the bin width for histogram or bandwidth for kernel estimation, which seems to be difficult to select an optimal bin width/bandwidth for computing the entropy. Fortunately, we notice that there exists a minimum of the first derivative of entropy for both histogram and kernel estimation, and this minimum point of the first derivative asymptotically points to the optimal bin width or bandwidth. We have verified these findings by large amounts of numerical experiments. Hence, we suggest that the minimum of the first derivative of entropy be used as a selector for the optimal bin width or bandwidth of density estimation. Moreover, the optimal bandwidth selected by the minimum of the first derivative of entropy is purely data-based, independent of the unknown underlying probability density distribution, which is obviously superior to the existing estimators. Our results are not restricted to one-dimensional, but can also be extended to multivariate cases. It should be emphasized, however, that we do not provide a robust mathematical proof of these findings, and we leave these issues with those who are interested in them.Comment: 8 pages, 6 figures, MNRAS, in the pres

The Theoretical Framework of Earnings Management

The definition of earnings management has been inconsistent in the literature. Major problems with the definition include ambiguity and immeasurability. As a solution, this paper intends to develop a constructive definition of earnings management and discuss the conceptual distinctions between earnings management and its counterparts. The review of the literature provides evidence of the validity of the developed definitions. The results of the paper are important for both theoretical and empirical researches on earnings management, as well as for regulators, lawmakers, firms’ contracting parties and investors. Keywords: earnings, management, manipulation, fraud Résumé: La définition du management des revenues a été contradictoire dans la littérature. Les problèmes majeurs sur la définition comprend l’ambigueté et immeasurabilité. En tant que solution, ce documentr a l’ambition de développer une définition constructive du management des revenues et de discuter sur les distinctions conceptionelles entre le management des revenues et ses contreparites. La revue de la littérature sert le témoingnage de la validité de définitions développées..Les résultat de ce document sont importants pour les recherches théoriques et empiriques sur le management des revenues, aussi pour les régulateurs, législateurs, les parties contractuelles et d’investissements des entreprises. Mots-clés: earnings,management,manipulation,fraud (GAAP) in the United States. Every country has its ow

A Different Perspective of Earnings Management

Many maintain that earnings management is harmful. Arguing that this is untrue, the paper studies the benefits of earnings management to firms’ various contracting parties and investors, as well as the benefits on social resource allocation. The results of this research have important implication for regulators and lawmakers. Key words: earnings, management, fraud, value-adding Résumé: Beaucoup de gens insistent sur le fait que la gestion de revenu est préjudiciable. Argumentant contre cette point de vue, cet essai étude les bénéfices de la gestion de revenu pour les collaborateurs divers de l’entreprise et les investisseurs, ainsi que les bénéfices sur la distribution des ressources sociales. Le résultat de cette recherche s’avère très signifiant pour les régulateurs et les législateurs. Mots-Clés: revenu, gestion, fraude, valeur ajouté

A Different Perspective of Earnings Management

Many maintain that earnings management is harmful. Arguing that this is untrue, the paper studies the benefits of earnings management to firms’ various contracting parties and investors, as well as the benefits on social resource allocation. The results of this research have important implication for regulators and lawmakers. Key words: earnings management, fraud, value-adding Résumé: Beaucoup de gens pensent que la gestion de profits est nuisible. Argumentant que ce point de vue est faux, cet article étudie les bénéfices de la gestion de profits pour les différentes parties de l’entreprise, les investisseurs ainsi que l’allucation des ressources sociales. Les résultats de cette recherche revêtissent une grande importance pour les dirigeants et les législateurs. Mots-Clés: gestion de profits, fraude, valeur ajouté