Showing 1 - 9 of 9
Following Basu (1997), the excess of the sensitivity of accounting earnings to contemporaneous negative share return over its sensitivity to contemporaneous positive share return (the earnings-sensitivity difference (ESD)) has been widely interpreted as an indicator of...
Persistent link: https://www.econbiz.de/10009433400
This paper examines whether the incidence of earnings management in the UK depends on board monitoring. We focus on two aspects of board monitoring: the role of outside board members and the audit committee. Results indicate that the likelihood of managers making income-increasing abnormal...
Persistent link: https://www.econbiz.de/10009433336
We use a cross-sectional valuation model that distinguishes between the operating and financial activities of the firm to examine the repercussions of three main alternative measures of pension expense. The GAAP Method recognizes a smoothed net pension expense, the NETCOST Method includes the...
Persistent link: https://www.econbiz.de/10009433412
Following Basu (1997), the difference between the sensitivity of accounting earnings to negative equity return (a proxy for bad news) and its sensitivity to positive equity return (a proxy for good news) has been interpreted as an indicator of conditional accounting conservatism. However, some...
Persistent link: https://www.econbiz.de/10009478134
Following Basu (1997), the excess of the sensitivity of accounting earnings to contemporaneous negative share return over its sensitivity to contemporaneous positive share return (the earnings-sensitivity difference (ESD)) has been widely interpreted as an indicator of...
Persistent link: https://www.econbiz.de/10009478137
Prior research using the residual income valuation model and linear information models has generally found that estimates of firm value are negatively biased. We argue that this could result from the way in which accounting conservatism effects are reflected in such models. We build on the...
Persistent link: https://www.econbiz.de/10009433331
It has been suggested that dirty surplus accounting (violation of the clean surplus relationship (CSR)) may result in mismeasurement of performance and value, and that cross-country variation in dirty surplus accounting may cause particular problems for international comparisons. Using...
Persistent link: https://www.econbiz.de/10009433332
The paper extends previous research on earnings persistence by (i) studying earnings persistence and market responses pertaining to earnings inclusive and exclusive of extraordinary items (EI), and (ii) establishing the dominating influence exerted by the existence of EI. Using data related to...
Persistent link: https://www.econbiz.de/10009433503
Following Basu (1997), the difference between the sensitivity of accounting earnings to negative equity return (proxy for bad news) and its sensitivity to positive equity return (proxy for good news) is interpreted as an indicator of conditional accounting conservatism. However, there is concern...
Persistent link: https://www.econbiz.de/10009433643