We explore whether uncertainty avoidance, an important aspect of national culture, influences the level of informativeness of share prices about future earnings. Uncertainty avoidance relates to the extent to which the members of a society feel threatened by uncertain or unknown situations. We...

We examine whether requiring versus allowing conditional capitalisation of development expenditure affects the extent to which capitalisation conveys more information about future earnings, relative to expensing. UK GAAP (SSAP 13) permitted, but not required, conditional capitalisation of...