Purpose – This paper aims to examine the impact of managerial equity ownership on return on assets as a measure of profitability and two financial statement‐based agency cost measures, i.e. asset utilization and an expense ratio, which proxy for management's efficiency in use of assets and...

Purpose – This paper aims to examine the impact of managerial equity ownership on return on assets as a measure of profitability and two financial statement-based agency cost measures, i.e. asset utilization and an expense ratio, which proxy for management's efficiency in use of assets and...

While much has been said and written about the effect of the 2002 Sarbanes-Oxley Act (SOX), one consequence of the new regulation that has been largely neglected is the law's dramatic impact on how audits are bought and sold in the United States. Prior to SOX, the process was clear and simple:...

Following the scandals involving Enron, WorldCom, and Qwest Communications, the accounting profession has spent the past several years trying to get back on track. While Sarbanes-Oxley may improve the decision-making of audit professionals, and help prevent future large-scale catastrophes that...

Purpose – To examine whether both the value relevance of accounting information, and the quality of earnings affect financial analysts' revisions of forecast annual earnings per share soon after an earnings release. Design/methodology/approach – For firms whose accounting earnings provide...

This paper presents an instructional case based on the 2001 annual report of the Campbell Soup Company (CPB). During that year, CPB's shareowners' equity went from a surplus of USD137 million to a deficit of USD247 million. The analysis will allow students to determine that the change resulted...

Purpose – To examine whether both the value relevance of accounting information, and the quality of earnings affect financial analysts' revisions of forecast annual earnings per share soon after an earnings release. Design/methodology/approach – For firms whose accounting earnings provide...