This paper investigates whether the bullwhip has economic consequences at the firm level. In particular, we examine the relation between the bullwhip and various accounting/financial performance measures including equity returns, cash flows, earnings, and earnings attributes such as earnings...

One of the critical factors that impacts outsourcing decisions in supply chains is the bullwhip effect (BE). This effect refers to the ubiquitous phenomenon whereby firm-level production is more volatile than its demand. The literature assumes that the BE increases costs and reduces...

This study investigates whether culture in general and religion in particular mitigate earnings management. Using a cross-country data set, empirical tests based on rank regressions indicate that earnings management is unrelated to both religious affiliation and the degree of religiosity. In...

This study extends the accounting-based valuation framework of Ohlson (1995) and Feltham and Ohlson (1999) to incorporate dynamic expectations about the level of systematic risk in the economy. Our model explains recent empirical findings documenting a strong negative association between changes...

This study extends the accounting-based valuation framework of Ohlson (1995) and Feltham and Ohlson (1999) to incorporate dynamic expectations about the level of systematic risk in the economy. Our model explains recent empirical findings documenting a strong negative association between changes...

This study compares the pricing of credit risk information conveyed by accounting numbers under IFRS relative to local GAAP. We measure the price of credit risk by CDS spreads and focus on three fundamental accounting metrics that inform about credit risk: earnings, leverage and book value...

We examine whether financial and non-financial variables, separately and in tandem, are value relevant in explaining market returns, equity values and the degree of investment by sophisticated investors for a sample of drug development companies. Patent counts, number of collaborations and...

This study examines the private debt contracting relation between performance covenants and conservative accounting under asymmetric information. Asymmetric information is characterized by borrowers' proclivity to appropriate wealth from lenders to themselves. We find that accounting...

This paper rigorously develops and extends the Ball-Brown (1968) and Beaver (1968) measures of the information content of earnings from underlying primitives, using the asset pricing model of Vuolteenaho (2002). The standard Ball-Brown and Beaver measures of information content are obtained by...

The purpose of this paper is to model the sources and extent of the potential biases of Activity Based Costing in the context of product profitability decisions. In particular we investigate a common manufacturing setting--the batch scheduling of multiple (two) products on a single production...