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Extrapolation is a process used to accelerate the convergence of a sequence of approximations to the true value. Different stepsizes are used to obtain approximate solutions, which are combined to increase the order of the approximation by eliminating leading error terms. The smoothing technique is also applied to suppress order reduction and to dampen the oscillatory component in the numerical solution when solving stiff problems. The extrapolation and smoothing technique can be applied in either active, passive or the combination of both active and passive modes. In this paper, the authors investigate the best strategy of implementing extrapolation and smoothing technique and use this strategy to solve stiff ordinary differential equations. Based on the experiment, the authors suggest using passive smoothing in order to reduce the computation time.

The two-step smoothing is a composition of four steps of the symmetric method with different weights. It is used as the final two steps when combined with many steps of the symmetric method. The aim is to preserve symmetry and provide damping for stiff problem and to be more robust than the one-step smoothing. The two-step smoothing is L-stable. The new method is then applied with extrapolation process in passive and active modes to investigate the most efficient and accurate method of implementation.

In this paper, the authors constructed the two-step smoothing to be more robust than the one-step smoothing. The two-step smoothing is constructed to achieve as high order as possible and able to restore the classical order of particular method compared to the one-step active smoothing that is only able to achieve order-1 condition. The two-step smoothing for ITR is also superior in solving stiff case since it has the super-convergent order-4 behavior. In our experiments with extrapolation, it is proven that the two-step smoothing is more accurate and more efficient than the one-step smoothing, namely 1ASAX. It is also observed that the method with smoothing is comparable if not superior to the existing base method in certain cases. Based on the experiment, the authors would suggest using passive smoothing if the aim is to reduce computation time. It is of interest to conduct more experiment to validate the accuracy and efficiency of the smoothing formula with and without extrapolation.

The implementation of extrapolation on two-step symmetric Runge–Kutta method has not been tested on variety of other test problems yet. The two-step symmetrization is an extension of the one-step symmetrization and has not been constructed by other researchers yet. The method is constructed such that it preserves the asymptotic error expansion in even powers of stepsize, and when used with extrapolation the order might increase by 2 at a time. The method is also L-stable and eliminates the order reduction phenomenon when solving stiff ODEs. It is also of interest to observe other ways of implementing extrapolation using other sequences or with interpolation.

The purpose of this paper is to investigate whether income smoothing does indeed improve the informativeness of stock prices about firms' future earnings and cash flows. Also an approach to studying the effects of income smoothing is presented.

This study uses data from 1992‐2006 and runs regressions on each of the 560 industry‐year cross‐sections. The data compiled from the financial statements of firms were collected for each year available from the Tehran Stock Exchange database. Income smoothing is defined as the management of accruals to reduce time‐series variation in income, and uses a cross‐sectional version of the Jones model, modified by Kothari, Leone and Wasley. Smoothing is measured as the variation of net income relative to the variation in CFO, or the correlation between changes in accruals and changes in CFO. Informativeness is measured as the coefficient on future earnings (cash flows) in a regression of current stock return against current and future earnings (cash flows and accruals).

The findings suggest that income smoothing enhances the information content of the effect of stock price on future earnings, thus improving the ability of market participants to make informed decisions about the allocation of capital resources.

Although previous research on the subject of income smoothing in an emerging market has been documented, its effect on stock prices efficiency is largely unknown. Thus, this paper presents an approach to studying the effects of income smoothing and the knowledge that the ability to manage earnings could improve stock prices efficiency could be useful for academics and policymakers in this market.

This paper empirically investigates whether trade openness (TO) in Brazil, Russia, India, China and South Africa (BRICS) countries affects how banks might employ loan loss provisions (LLPs) to smooth out their earnings and how adopting the International Financial Reporting Standards (IFRS) can mitigate it.

The analysis includes 78 commercial banks from five BRICS nations and spans 2014 through 2020. To test these hypotheses, the authors utilized a fixed-effect and two-step system panel generalized methods of moments (GMM) estimator.

TO positively affects income smoothing (earnings management) across BRICS commercial banks. The effect is clearer in banks that make financial reports under the IFRS. Path analysis reveals that the effect of TO is driven by nonperforming loans (NPLs). Additionally, the IFRS restricts earnings management in the BRICS banking sector when a better institutional environment is present. The authors found that accounting rules (IFRS) and enforcement (better institutional settings) interact to enhance earnings’ quality.

The relationship between TO and bank earnings management practices is important for understanding the complex interplay between trade and finance and ensuring financial stability, investor confidence and regulatory compliance. This study recommends better regulations and governance mechanisms for financial reports in emerging nations like BRICS. Additionally, macro-prudential regulators and banking supervisors should work closely to ensure transparent TO decisions with improved discipline, institutional quality and regulatory support to enhance bank stability.

The study finds evidence of bank income smoothing in the BRICS and introduces TO as a determinant. It also identifies the evolving role of IFRS in the presence of higher institutional quality and TO, thereby expanding the financial reporting literature.

This study examines the impact of competition and concentration on bank income smoothing in Central and Eastern European (CEE) countries.

The two-step system GMM method was used to analyse the impact of competition and concentration on bank income smoothing in 17 CEEs from 2004 to 2015.

Loan loss provisions (LLPs) are negatively related to bank competition and concentration. The authors find no evidence for income smoothing using LLPs in a high-competition or high-concentration environment.

A limitation of the study is that the analysis was restricted to commercial banks. The authors did not examine investment banks or microfinance banks in this study. Also, not having access to databases does not allow them to include recent years in the study.

CEE commercial banks will likely keep fewer provisions or engage in under-provisioning when they face intense competition, and this can expose them to credit risk, which may threaten their stability.

This study is the first to investigate the effect of concentration and competition on income smoothing among CEE banks.

The purpose of this study is to examine the association between two reporting mechanisms used by managers to communicate risk information to the capital market: risk disclosure and earnings smoothing.

This study juxtaposes two competing hypotheses, the “opportunistic” and the “signaling”, and empirically investigates whether one dominates the other for a sample of large UK firms for the period 2005–2015. This study also uses the global financial crisis as an arguably exogenous shock on overall risk in the economy to investigate its effect on managers' joint use of textual risk disclosures and earnings smoothing.

This study finds that risk disclosure and earnings smoothing are negatively associated. This finding supports that managers with incentives to mask the firm’s true underlying risk through smoothing earnings provide lower levels of risk-related disclosures. This study documents that the trade-off between risk disclosure and earnings smoothing is more pronounced during the global financial crisis period than before and after the crisis period. Further, this study demonstrates a more negative association for firms with higher volatility of cash flows. This negative association is robust to various model specifications, additional corporate governance related controls and an alternative measure of earnings smoothing.

The findings provide new empirical evidence about the association between risk disclosure and earnings smoothing and support the opportunistic hypothesis, especially when firms are faced with increased risk.

The purpose of this paper is to examine the impact of short sale prospect on future income smoothing.

This study examines how short sale prospect impacts future income smoothing. This study follows prior research and uses two measures of income smoothing. One is the correlation between the change in prediscretionary income and the change in discretionary accruals. The other is the variability of earnings relative to the variability of cash flows.

This study finds that short sale prospect has a negative impact on future income smoothing. This finding is robust to use different measures of short sale prospect and income smoothing and to subsample tests. Additional analysis reveals that short sale prospect, by curbing income smoothing, reduces future stock price crash risk.

To the best of the authors’ knowledge, this study is the first to examine the impact of short selling on firms’ subsequent smoothing of reported income. This study contributes to the earnings quality literature by demonstrating the governance role of short selling on future earnings smoothness.

This paper aims to examine the association between income smoothing and the cost of debt in two different countries, namely, the UK and Nigeria.

The authors used a sample from listed firms in the UK and Nigeria during 2000–2019. The study hypotheses are examined by implementing quantitative methods, including panel regression analysis, cross-sectional regression analysis and parametric independent samples t-test.

The results reveal that Nigerian companies have a substantially higher cost of debt and are more active in using income-smoothing practices. However, the relationship between income smoothing and the cost of debt is not found to be statistically significant in both countries. Besides, the results of this study show that financial leverage, profitability, company size and asset turnover are significantly associated with the cost of debt.

The study contributes to the existing literature by providing new insights concerning the contrast between developed and developing countries in financial and reporting issues.

The purpose of this paper is to assess the practice of income smoothing in the Gulf Cooperation Council (GCC) emerging markets; Saudi Arabia, Kuwait, United Arab Emirates, Oman and Qatar. Then, to examine the impact of income smoothing on the earnings quality to decide whether income smoothing can serve as either a tool to enhance earnings quality or a tool for opportunistic behavior. Audit quality and corporate governance as additional factors are considered in this study.

The study methodology measures income smoothing behavior based on the coefficient of variation method. Earnings quality is measured as an outcome of the explained variations in stock returns by earnings based on the efficient market hypothesis. Audit quality is measured based on brand as higher quality assigned to auditor from any of the Big 4, while the corporate governance is addressed based on the extent of governmental ownership. The initial study sample comprises 55 companies over a ten year period, from 1999 to 2008; the final sample represents approximately 64 percent of the industrial sector that have public data during the study.

The results suggest that income smoothing behavior in the GCC markets has many variations in practice. Income smoothing, on average, improves earnings quality in three countries out of four, but not significantly for the whole sample based on earnings level. The earnings changes model demonstrated a positive and significant impact of income smoothing on earnings quality. Audit quality and earnings quality have a positive relationship within the region, and companies dominated by the government perform well in accordance with the earnings-return model.

The study is limited to the industrial sector of the GCC.

The study opens the door to future applications to other sectors within the GCC, same sectors and other sectors for Middle East countries and other emerging markets.

The study may foster a better understanding of accounting practices in the GCC and Middle East. The study reveals variations in different aspects among GCC countries, this matter should be considered in separate studies across different areas.

The study makes an original contribution to being the first to explore this topic in the GCC. Additionally, this study shows that the GCC markets have different characteristics in the practice and impact of income smoothing on earnings’ quality. Further, audit quality and corporate governance was investigated for each country and for the region, in addition to the interaction between these factors with the income smoothing and earnings quality.

The purpose of this paper is to numerically investigate the heat transfer performance of aviation kerosene flowing in smooth and enhanced tubes with asymmetric fins at supercritical pressures and to reveal the effects of several key parameters, such as mass flow rate, heat flux, pressure and inlet temperature on the heat transfer.

A CFD approach is taken and the strong variations of the thermo-physical properties as the critical point is passed are taken into account. The RNG k-ε model is applied for simulating turbulent flow conditions.

The numerical results reveal that the heat transfer coefficient increases with increasing mass flow rate and inlet temperature. The effect of heat flux on heat transfer is more complicated, while the effect of pressure on heat transfer is insignificant. The considered asymmetric fins have a small effect on the fluid temperature, but the wall temperature is reduced significantly by the asymmetric fins compared to that of the corresponding smooth tube. As a result, the asymmetric finned tube leads to a significant heat transfer enhancement (an increase in the heat transfer coefficient about 23-41 percent). The enhancement might be caused by the re-development of velocity and temperature boundary layers in the enhanced tubes. With the asymmetric fins, the pressure loss in the enhanced tubes is slightly larger than that in the smooth tube. A thermal performance factor is applied for combined evaluation of heat transfer enhancement and pressure loss.

The asymmetric fins also caused an increased pressure loss. A thermal performance factor ? was used for combined evaluation of heat transfer enhancement and pressure loss. Results show that the two enhanced tubes perform better than the smooth tube. The enhanced tube 2 gave better overall heat transfer performance than the enhanced tube 1. It is suggested that the geometric parameters of the asymmetric fins should be optimized to further improve the thermal performance and also various structures need to be investigated.

The asymmetric fins increased the pressure loss. The evaluation of heat transfer enhancement and pressure loss Results showed that the two enhanced tubes perform better than the smooth tube. It is suggested that the geometric parameters of the asymmetric fins should be optimized to further improve the thermal performance and also various structures need to be investigated to make the results more engineering useful.

The paper presents unique solutions for thermal performance of a fluid at near critical state in smooth and enhanced tubes. The findings are of relevance for design and thermal optimization particularly in aerospace applications.

This study aims to examine the impact of income smoothing on the value of firms in a regulated security market, moderated by market risk. This is based on the prevalence of accounting scandals resulting in the collapse of firms which has been attributed to the opportunistic behaviors of managers.

The ex post facto research design was employed, and as such, data were gathered from secondary sources. The quantitative approach was also used in the study. Furthermore, the system generalized method of moments (Blundell–Bond) panel estimation technique was used for analyzing the data. Income smoothing was measured using the accrual based methods, while firm value was measured using share price.

The study found that income smoothing has a negative significant impact on firm value. The study also revealed that market risk is a significant variable that defines the relationship between income smoothing and firm value.

Testing the moderating effect of market risk on the relationship between income smoothing and firm value is unique to this study, particularly from a regulated security market and emerging economy.