This paper assesses information transfer in the capital market in the context of successive announcements of provisions for bad debts made by UK and US banks during the Latin American debt crisis. Using a system of simultaneous equations, it is shown that the unexpected increase in the share...

This paper is motivated by the links that continue to be forged between security pricing and accounting, building on recent findings that firms tend to be asymmetrically conservative in the timeliness of earnings recognition. The evidence is that firms in the European Union tend to recognise...

The objective of this paper is to assess whether the inclusion of improved estimates of the future in corporate annual financial statements has brought about greater international comparability. It is argued that including more relevant information in financial reporting enables users to...