Purpose – Tax compliance has been studied by analyzing the individual decision of a representative person between planning and evading taxes. A neglected aspect of tax compliance is the impact of bureaucracy and corruption. Both bureaucracy and corruption are hypothesized to have a negative...

Purpose – This study aims to examine whether accounting knowledge is associated with a decision maker's tendency to ignore value added information in wealth measurement and distribution decisions. Design/methodology/approach – A between-subjects laboratory experiment was employed. Subjects...

Summarizes previous valuation models based on accounting information, extends the basic model to include dividends and retained earnings, and develops hypotheses on the relationship between share prices, dividends and earnings for firms with different investment opportunity set (IOS) levels....

Discusses three theories on the link between multinationality and investment value (internalization, imperfect world capital markets and managerial objectives) and develops hypotheses on its relationship with the informativeness of accounting earnings and levels of discretionary accruals. Tests...

Investigates whether the investment opportunities available to US multinationals affect their profitability relationships. Samples 100 firms from 1987 to 1992, and classifies them by high or low multinationality and high or low growth. Correlates three measures of multinationality, and of the...

Outlines the valuation models of Ohlson (1995) and Feltham and Ohlson (1995), which relate share prices to accounting data, and develops a version which substitutes net value added for earnings. Tests it on 1978‐1995 US data and shows that it is better than the conventional model at explaining...