Purpose – The purpose of this paper is to show how dynamic regression models based on equilibrium correction principles can be used to form auditor expectations of account balances as part of the analytic review. Design/methodology/approach – The design and method are empirical, using the...

A case study of the implementation of the balanced scorecard in a large local government authority is reported. Based on interview data, the factors that were perceived by senior managers to be important to the success or failure of the implementation are analysed. It is determined that...

Basic annual cross sections of market on accounting values are estimated in levels and returns using a 30 US firm by 50 year panel of data. Log transformations of the levels data are shown to produce an improved statistical specification. Deflated returns models are shown to suffer from other...

Average parameter estimates from dynamic models for 30 large US firms over the period 1955-2004 are compared to the average parameter estimates from 50 annual cross sections. Results from this sample show statistically well specified models are multiplicative in form, not additive. Dynamic...

This study examines the implied underlying relation between market and accounting values in a long-run time-series approach based on error correction principles. Recent studies have suggested problems with the current approaches to linear valuation modelling (Ohlson and Kim, 2015). The results...

Empirical evidence, mostly cross-sectional, is provided in this paper supporting the theory that the market accounting-relation is best understood as a multiplicative relation, when the modeled variables are positive. The theory is shown to work well with large sets of cross section and pooled...

This paper examines the explanatory power of earnings in equity valuation and value relevance of earnings through a combination of cross-section and time series regression analysis. Cross-section models are based upon all US firms with a 31 December year-end in the Compustat files between 1960...

Earnings quality, conservative accounting and earnings management, are interpreted in a variety of ways in theory and empirical research in the accounting literature. Little attention is paid, in defining these concepts, to the accounting measurement procedures that generate accounting numbers...