Recent U.S. studies report earnings value relevance has declined over time. Some authors suggest non-recognition of intangible assets in the U.S. is a major reason for declining earnings value relevance. However, the evidence is mixed on the effect of non-recognition of intangible assets. To...

Considerable volume of research have been undertaken over the last 30 years assessing the effect of organisational size, listing status, leverage and audit firm size on disclosure quality in corporate annual reports. By applying meta-analysis techniques, the purposes of this paper are to...

This paper examines the perceptions of lending bankers of the use of financial covenants and the consequences of their breach in private lending agreements in New Zealand. Based on a survey of 26 bank loan officers, the results show that lenders perceived use of covenants is associated with the...

We propose a theory of value relevance based on a theory of information, with foundations in the efficient markets hypothesis. Like the EMH, we consider a theory of heterogeneous information, and like the EMH, testing for value relevance becomes a joint test of market efficiency, the process of...

This study reports the results of an empirical study that examined the impact of changes in the board of directors on writedowns of non-current assets. Using 337 annual reports of the firms listed on the New Zealand Stock Exchange for 7 years from 1993 to 1999, the results show that changes in...

From 1970 to 2003, we document earnings restatements for the top 500 Australian firms, examine the characteristics of restating firms, and test whether restatements are value relevant. Of the 195 earnings restatements, 49 per cent decrease prior-period earnings (negative restatements). Negative...

Purpose – The purpose of this paper is to assess the financial disclosure vis-á-vis economic reality of research and development (R&D) expensed by Australian firms under the pre-2005 Australian generally accepted accounting principles (A-GAAP) regime via the lens of market-to-book....