Regulators and policy makers express concern on the value of a fairness opinion, which is a third-party certification of transaction price in M&As. Prior literature also provides mixed evidence on the implication of fairness opinions. Motivated by this concern and prior research, we examine...

This study examines whether the revised lease standards (ASC 842 and IFRS 16) make U.S. GAAP-based accounting amounts more comparable with IFRS-based accounting amounts. Our study is motivated by the FASB and the IASB’s call for research on the comparability of the revised lease standards. We...

We present evidence on the benefits of accounting conservatism of the target firm in a merger and acquisition transaction. The use of conservative accounting serves as a mechanism that reduces the likelihood of acquiring underperforming assets for the acquirer, making the target more valuable...

In 2007, the U.S. Securities and Exchange Commission voted to eliminate the 20F reconciliation requirement for foreign issuers listing their stocks or bonds in the U.S. capital markets and preparing their financial statements under International Financial Reporting Standards (IFRS). Distinct...

We examine the effect of accounting conservatism on earnings persistence and the stock market's valuation of earnings. Using a sample of U.S. companies during the period of 1988-2010, we find that firms with more conservative accounting generate less persistent earnings than firms with less...

This paper examines earnings management prior to stock option grants. Because the gain realized from a stock option is dependent on the difference between the exercise price determined on the stock option grant date and market price on the exercise date, management has the incentive to...

The SEC adopted a rule in December 2007 to eliminate the 20-F reconciliation requirement for foreign private issuers preparing financial statements under IFRS as issued by the IASB. We examine whether the SEC's elimination of the 20-F reconciliation affects the cost of debt for such foreign...