Purpose – In response to recent concerns on earnings quality and a firm's fundamental performance, the purpose of this paper is to re‐examine salient questions under accrual accounting: how earnings quality affects the role of earnings and operating cash flows in a firm's valuation....

Purpose – Prior studies provide mixed propositions on whether earnings levels or earnings changes provide the better explanatory power for variations of stock returns and whether the time-series behavior of earnings affects the value relevance of both earnings variables. This paper aims to...

Purpose – The purpose of this paper is to investigate the effects of class action litigation on firms' cost of equity capital. Design/methodology/approach – The paper uses three different models to estimate the cost of equity capital. To separate the impact of lawsuit filings on the cost of...

This paper investigates the effectiveness of using securities class action lawsuits in monitoring defendant firms by institutional lead plaintiffs from two aspects: (1) immediate litigation outcomes, including the probability of surviving the motion to dismiss and the settlement amount, and (2)...

Purpose – The purpose of this paper is to examine the differential effects of institutional non‐blockholders (NONB) and active institutional blockholders (ACTB) on earnings management behavior, as measured by discretionary accruals. Design/methodology/approach – This paper also proposes...

Purpose – The purpose of this paper is to investigate the timing of upward asset revaluations using large UK data. Design/methodology/approach – A standard logistic model is used to examine the timing of upward asset revaluations. The result is further confirmed by using the ordinary least...