Interpreting accruals as working capital investment, we hypothesize that firms rationally adjust their investment to respond to discount rate changes. Consistent with the optimal investment hypothesis, we document that (i) the predictive power of accruals for future stock returns increases with...

Past research has shown that the level of operating accruals is a negative cross-sectional predictor of stock returns. This paper examines whether the accrual anomaly extends to the aggregate stock market. In contrast with cross-sectional findings, there is no indication that aggregate operating...

The majority of IFR and disclosure studies are focused on USA and European developed countries. Only a few studies have been carried on CEE countries. This paper examines the extent of voluntary internet financial reporting and disclosure of the Romanian

Along with the economic globalization, the international accounting regulation bodies faced the need to issue internationally accepted global accounting standards. The effect was the issuance and the widespread of the International Financial Reporting Standards (IFRS). At European level, the...

In 2002, the Financial Accounting Standards Board allowed corporations to recognize stock options as an expense on their financial statements on a voluntary basis. Option expensing became mandatory in 2004. This investigation uses two different models to reexamine the effects of the announcement...

Studies of accounting information value relevance are often based on the scale of R2 value. However, Insukindro (1998) states that a high R2 coefficient does not imply that a model is superior. When linear regression estimation produces a high coefficient of R2 but it is not consistent with the...

This article belongs to the current in research literature, which is concerned with value relevance. Its main aim is to test the impact of the current and future accounting variables on the firm’s market value, by analyzing these relations with reference to the financial sector of the...

This study examines how information environment and industry concentration affect the relations between firms’ financial disclosure quality and cost of capital. Information environment is proxied by firm size, and industry concentration is proxied by four-firm concentration ratio. The...

China has sustained a rapid rate of economic growth and absorbed a great deal of foreign investment over the past decades. However, the laws pertaining to business in China have not kept up with China’s market growth. For this reason, investors in the Chinese stock market must assess...

High growth service firms invest resources to acquire and retain customers, creating intangible assets. This paper tests whether investors use customer metrics to value these firms. Using a unique handcollected data set, we show that investors discount the values of high growth service firms if...