This research empirically examines the interaction between the choices of inventory accounting method and capital structure through a parsimonious test of the predictions from the signaling model of Hughes Schwartz and Thakor (1994). We find that the debt of firms remaining at FIFO decreases...

This paper examines whether currently available financial disclosures on acquired entities allow investors to effectively predict goodwill impairment, a task that has become more important following the recent abolishment of goodwill amortization. We track the performance of acquired companies...