Existing literature employs two approaches to assess the validity of alternative proxies for firm-specific cost of equity capital. One approach relies on the theoretical link between future realized returns and cost of equity capital, while the second approach relies on the theoretical link...

In this paper, I provide two general insights that are useful in evaluating the economic trade-offs of alternative accounting measurement rules. First, when there are multiple imperfections in the world, restricting a strict subset of it need not always improve welfare. Second, a firm is not a...

The information systems literature and the public press have called for organizations to more closely scrutinize their information technology (IT) controls; however, little more than anecdotal evidence exists on the business value of IT internal control investments, beyond regulatory compliance....

Statement of Financial Accounting Standards No. 158 significantly changes how firms report the financial position of their defined-benefit pension plans. Under this new standard, firms must report the funded status, equal to the net of the projected benefit obligation and the fair value of their...

In this paper, I examine the relations between risk management disclosures, governance, and the market pricing of the fair value gains and losses (FVGL) for US commercial bank holding companies (banks). I find that banks with strong corporate governance disclose more about their risk management...

This research examines the valuation effect and the factors associated with firms' decisions to expense executive stock options, as well as determinants of market reaction to expensing announcements. The likelihood of expensing is found to be higher for firms subject to fewer agency problems and...

Properties of many important valuation rules can be quantified, examined and compared in a unified framework to assist policy decisions. Valuation rules can be viewed as econometric estimators of unobserved values of aggregates. Which valuation rule has minimum mean squared error (relative to...

The main objective of this study is to investigate the usefulness of accounting information in explaining the stock price performance in the Egyptian stock market. This objective centers on introducing an artificial intelligence technique, namely, Artificial Neural Networks (ANNs), instead of...

Standard formulas for valuing the equity of going concerns require prediction of payoffs "to infinity" but practical analysis requires that they be predicted over finite horizons. This truncation inevitably involves (often troublesome) "terminal value" calculations. This paper contrasts dividend...

This paper investigates the relative and incremental value relevance of earnings and operating income in the emerging capital market of Iran. The issue is tested by regressing stock returns and stock market prices on the levels of earnings and operating income. Based on a sample of 1389...