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Evidence on differences between recognition and disclosure: A comparison of inputs to estimate fair values of employee stock options
Choudhary, Preeti - In: Journal of Accounting and Economics 51 (2011) 1, pp. 77-94
I investigate reliability differences across recognition and disclosure regimes to shed light on differing incentives and reporting of employee stock option (ESO) fair values. I compare ESO fair values based on firm-reported inputs with ESO fair values based on benchmark inputs, estimated...
Persistent link: https://www.econbiz.de/10010572432
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A measurement approach to conservatism and earnings management
Gao, Pingyang - In: Journal of Accounting and Economics 55 (2013) 2, pp. 251-268
This paper formalizes a two-step representation of accounting measurement and uses it to formalize a general rationale for conservatism as a measurement principle. A transaction's economic substance manifests itself in characteristics of the transaction, and an accounting rule is a mapping from...
Persistent link: https://www.econbiz.de/10010664198
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Estimation sample selection for discretionary accruals models
Ecker, Frank; Francis, Jennifer; Olsson, Per; Schipper, … - In: Journal of Accounting and Economics 56 (2013) 2, pp. 190-211
We examine how the criteria for choosing estimation samples affect the ability to detect discretionary accruals, using several variants of the Jones (1991) model. Researchers commonly estimate accruals models in cross-section, and define the estimation sample as all firms in the same industry....
Persistent link: https://www.econbiz.de/10010729562
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Audited financial reporting and voluntary disclosure as complements: A test of the Confirmation Hypothesis
Ball, Ray; Jayaraman, Sudarshan; Shivakumar, Lakshmanan - In: Journal of Accounting and Economics 53 (2012) 1, pp. 136-166
. Committing to higher audit fees (a measure of financial statement verification) is associated with management forecasts that are …
Persistent link: https://www.econbiz.de/10011043079
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The consequences of protecting audit partners’ personal assets from the threat of liability
Lennox, Clive; Li, Bing - In: Journal of Accounting and Economics 54 (2012) 2, pp. 154-173
This study investigates the audit firm’s decision to protect its partners’ personal assets by becoming a limited … liability partnership (LLP). We find that the likelihood of an audit firm switching from unlimited to limited liability is … increasing in its size and exposure to litigation risk. We find no evidence that audit firms supply lower audit quality, lose …
Persistent link: https://www.econbiz.de/10010594333
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The unintended consequences of PCAOB auditing Standard Nos. 2 and 3 on the reliability of preliminary earnings releases
Bronson, Scott N.; Hogan, Chris E.; Johnson, Marilyn F.; … - In: Journal of Accounting and Economics 51 (2011) 1, pp. 95-114
documentation has delayed audit completion. However, due to market demand for timely disclosures, most firms maintain the same … preliminary earnings release date even though the audit may not be complete as of that date. Results indicate revisions to … earnings releases after the audit report date had not changed. Additionally, stock market reaction to impending revisions …
Persistent link: https://www.econbiz.de/10010572405
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In defense of fair value: Weighing the evidence on earnings management and asset securitizations
Barth, Mary; Taylor, Daniel - In: Journal of Accounting and Economics 49 (2010) 1-2, pp. 26-33
Dechow, Myers, and Shakespeare (DMS, 2009) find a negative relation between income from securitization activities and income from non-securitization activities. DMS interprets this finding as indicating that managers use the flexibility available in fair value accounting rules to smooth...
Persistent link: https://www.econbiz.de/10008620146
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Accounting earnings and gross domestic product
Konchitchki, Yaniv; Patatoukas, Panos N. - In: Journal of Accounting and Economics 57 (2014) 1, pp. 76-88
We document that aggregate accounting earnings growth is an incrementally significant leading indicator of growth in nominal Gross Domestic Product (GDP). Professional macro forecasters, however, do not fully incorporate the predictive content embedded in publicly available accounting earnings...
Persistent link: https://www.econbiz.de/10010743801
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Creditor control rights, state of nature verification, and financial reporting conservatism
Tan, Liang - In: Journal of Accounting and Economics 55 (2013) 1, pp. 1-22
I examine the impact of state-contingent allocation of creditor control rights on financial reporting. Using a discontinuity analysis, I find that firms' financial reporting becomes more conservative immediately after covenant violations and this effect persists for at least eight quarters. The...
Persistent link: https://www.econbiz.de/10010608146
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Assessing methods of identifying management forecasts: CIG vs. researcher collected
Chuk, Elizabeth; Matsumoto, Dawn; Miller, Gregory S. - In: Journal of Accounting and Economics 55 (2013) 1, pp. 23-42
This paper examines the characteristics of management forecasts available on Thomson First Call’s Company Issued Guidance (CIG) database relative to a sample of forecasts hand-collected through a search of company press releases. Due to the significantly lower cost of using CIG (relative to...
Persistent link: https://www.econbiz.de/10010608147