The objective of this paper is to investigate how disclosure informativeness of U.S. multinational corporations varies with the informativeness of numbers produced by their financial accounting systems. We predict that firms whose current accounting numbers do not capture well the effects of the...

Summarizes the effects of globalization on financial markets, and the need for accounting practices to keep up with it. Criticizes the Financial Accounting Standards Board Exposure Draft “Accounting for derivatives and similar financial instruments and for hedging activities” for not...

The American Accounting Association (AAA) Committee on Accounting and Auditing Measurement (1991) had recommended that value added be considered for mandatory disclosure in the US in addition to the income and cash flow statements. This study examines empirically the relative merits of derived...