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This study aims to study the impact of earnings quality on firms’ financial performance.

An unbalanced panel data of 237 small- and medium-sized Portuguese companies from the mold industry, using 2010–2018 yearly data was analyzed. While most studies focus only on earnings management when assessing earnings quality, in this study six proxies for earnings quality are used, namely, accruals quality (a proxy for earnings management), earnings persistence, earnings predictability, earnings smoothness, earnings timeliness and earnings conservatism. Moreover, two proxies of financial performance are considered, the return on assets and the economic value added. An econometric model was estimated using either a fixed-effects or a random-effects specification to account for the individual firm-specific effects and ensure heteroscedasticity corrected estimates.

The results show that managers must be concerned with the quality of reported earnings, as it can affect positively firms’ financial performance, especially regarding accruals quality. Persistence, predictability, smoothness, timeliness and conservatism are shown not to exert significant influence on financial performance in the sample.

This work contributes not only as a literature review on these thematic but also to firms’ managers and stakeholders, who have information that helps them select strategies that guarantee earnings quality and improve firms’ financial performance.

This study proposed an econometric model that studies the relationship between earnings quality (using several proxies for it) and financial performance that can be applied to all companies.

This study aims to provide a comprehensive theoretical model based on stimulus-organismresponse, social impact, and signaling theory to examine the factors influencing the successful application of the celebrity endorsement strategy in social commerce (SC). Three aspects involved in the model include social experience, content quality and endorser credibility, which have yet to be comprehensively compared in previous studies. The process, therefore, involved thoroughly examining the social and quality factors associated with endorser quality, leading to brand image.

In total, 340 pieces of valid feedback from Indonesian respondents were used to validate the proposed model using structural equation modeling analysis. The model includes endorser expertise, attractiveness, brand credibility, content quality, parasocial interaction and herd behavior.

The study showed how parasocial interaction, herd behavior and content quality in SC platforms affect the credibility of endorsers, affecting brand credibility and leading to customer purchase intention.

This study explains how social experience and content quality affect endorsers’ credibility, leading to the brand’s credibility, which affects consumer purchase decisions in the SC context. It was discovered that most of the prior related studies focused on celebrity and brand credibility without adequate attention to other constructs existing in SC, such as social interaction and content quality. It also contributes to the practical aspect by proposing managerial action based on direct and indirect effect analysis, which is not comprehensively indicated in previous related studies.