Following Basu (1997), the excess of the sensitivity of accounting earnings to negative share return over its sensitivity to positive share return (the Basu coefficient) has been interpreted as an indicator of conditional accounting conservatism. Although this interpretation is supported by...

How is corporate governance to be measured? Much past research has focused on forming an index but this approach ignores the correlations between the variables forming the index and may also carry redundant variables. Principal Component Analysis (PCA) is a possible solution to these issues by...

This paper shows how the outputs of the accounting measurement process can be translated into terms that can be used in economic decisions. We introduce the notion of Term Structure of Capital Values (TSCV), uniquely associated to a Term Structure of Interest Rates (TSIR). We show that the state...