This paper investigates the relationship between value relevance of the multi-step income statement and managerial opportunistic behavior. In Japan, net income is disclosed by three steps, i.e., 1) operating profits from core operating activity, 2) ordinary income, measured by adding gains and...

The purpose of this paper is to investigate the value relevance of the legally mandated provisions. This paper examines the effects of changes in provisions on the value relevance of earnings. The results show that the calculation of provisions will deteriorate the relevance of earnings when the...

A quest for abnormal returns by using accounting information plays an important role of 'price discovery' in the investment practice. Coincidentally, it provides valuable counter-evidence for the traditional framework and theory in the academic fields and it encourages academicians to reexamine...

The purpose of this paper is to compare the usefulness between net income and comprehensive income. The results by SUR (seemingly unrelated regression) show the following evidence. Although net income is more persistent than comprehensive income in one year, the persistence of comprehensive...

This paper investigates the value relevance of earnings and the explanatory power of earnings for subsequent returns. This analysis, at the same time, examines the efficiency of capital markets. The targets of this paper are two class of returns over different periods. Cross-sectional analysis...

This study analyzes the value-relevance of accounting information in electric utilities in Japan. First, regression results show that earnings information, especially operating profits from electric business and earnings before taxes and extra ordinary items, have the higher explanatory power...

The purpose of this paper is to investigate the value relevance of current year earnings with condition of previous year earnings. First, since negative changes in earnings may contain more transitory elements, the capitalization coefficient on earnings decrease is smaller. However, that...

The main purpose of this research is to investigate the rationality of current form of performance measurement and reporting in Japan. In this paper, net income (bottom line) is divided into three components: 1) operating profits, 2) gains and losses from non-core operating activities and...

Two fictions are used in measuring accounting pension expenses. First, the periodical pension expenses are, not the results of allocation of firm's contributions, but the sum of the allocated costs of pension benefits to the employee and the realized returns (deduction from pension expenses)...

This paper investigates on the effects of economic recession in 2008 after the "financial crisis" with Firm - Level Data (non-financial sector) from the Corporate Enterprise Annually Statistics - from 1994 to 2008. The purpose of this research is to investigate the impact of the shock on the...