This study compared current operating income (COI), current operating income plus realizable holding gains measured in constant dollars and purchasing power gain (i.e., current real income (CRI)), and historical cost income measured in nominal dollars (HCI) on their ability to predict future...

This study presents a comprehensive evaluation of managerial choice of discretionary accounting methods and the use of the reporting process in income smoothing. After analyzing concepts of smoothing behavior, including managerial motivations to engage in smoothing, security market reactions to...