Small- and medium-size enterprises (SMEs) play a fundamental role in the economic performance of major economies especially in the light of the new Basel Capital Accord. Several lending communities proposed to treat SMEs as retail clients to optimize capital requirements and profitability. In...

This study considers domestic and international small and medium-sized enterprises (SMEs) of the United Kingdom separately while modelling their default risk. To establish the empirical validation, separate one-year default prediction models are developed using dynamic logistic regression...

The properties of earnings have changed dramatically over the past 40 years. Prior studies interpret this trend as a decline in earnings quality but disagree on whether it results from changes in the real economy or changes in accounting standards. I find that each new cohort of listed firms...

Prior research suggests that managers use income-increasing (decreasing) accruals to increase the value of their stock option exercises (grants). I extend this research by modeling firms' accrual choices when incentives from stock options conflict and are confounded by other stock option...

Firms can increase their level of conservatism by recognizing adverse economic events more promptly or by delaying the recognition of positive economic events, that is, by increasing their loss or gains conservatism, respectively. We extend prior research by examining the independent...

Revenue is one of the largest and most value-relevant items in firms' financial statements. Based on the ldquo;realizablerdquo; and the ldquo;earnedrdquo; criteria of SFAC No. 5 (FASB 1984), revenues should reflect both selling price and timing of delivery. Of those two aspects, selling-price...

This paper examines whether stock option grants explain missed earnings targets, including reported losses, earnings declines and missed analysts' forecasts. Anecdotal evidence and surveys suggest that managers believe that missing an earnings target can cause stock-price drops (Graham, et al....