The Financial Reporting Policy Committee of the Financial Accounting and Reporting Section of the American Accounting Association responded to the SEC's July 13, 2007 proposal to accept financial statements prepared in accordance with International Financial Reporting Standards (IFRS) from...

We investigate the relation between earnings predictability, information asymmetry and the behavior of the adverse selection cost component of the bid-ask spread around quarterly earnings announcements for NASDAQ firms. While we find an increase in the adverse selection component of the bid-ask...

Managers have long argued that the mandated disclosure of private cost information can affect a disclosing firm negatively as rival market participants can make strategic use of the information. In the presence of such quot;proprietary costs,quot; managers withhold private cost information to...

Many researchers have claimed that costing systems that provide materially more accurate or precise cost reports have a strict value-enhancing effect on decisions (i.e., Cooper 1988, 1995; Cooper and Kaplan 1991; Christensen and Sharp 1994; Rogers, Comstock and Pritz 1994; Swenson 1995; Gupta and King 1997)....

During the last ten years, there has been renewed interest in product costing systems. Many companies have made substantial investments in quot;new and betterquot; costing systems in an attempt to obtain more precise product cost information. In this paper we consider how firms competing in...

A recurring criticism of work relating to the impact of the accuracy of product cost information on firm profit is that many studies have ignored the cost of implementing or improving a cost reporting system. Second, previous studies have been set in monopolistic (Gupta and King 1994) or...

We examine whether adoptions of International Financial Reporting Standards (IFRS) enhance capital investment efficiency as measured by investment-cash flow sensitivity and value-enhancing risk taking for a comprehensive sample comprised of 10,340 mandatory and voluntary IFRS adoptions across 26...

This chapter demonstrates (1) divergence between spending based upon a budget ratcheting model and a benchmark spending model, (2) that this divergence affects organizational performance, and (3) that internal benchmarking enables unit-to-unit performance comparisons, despite claims of...