property of accrual accounting that any accrual-based earnings management in one period must reverse in another period. If the …

accounting process, fair value accounting, and the conservatism convention. We finish by summarizing research that identifies …Accounting earnings summarize periodic corporate financial performance and are key determinants of stock prices. We … review research on the usefulness of accounting earnings, including research on the link between accounting earnings and firm …

Accounting for employee stock options (ESOs) is controversial, with many arguing that it has substantial economic … consequences. Such arguments rely on the assumption that one or more interested parties fixate on accounting numbers and fail to … understand the real costs and benefits of ESOs. We review the various accounting issues and economic consequence arguments …

We examine 2,190 SEC Accounting and Auditing Enforcement Releases (AAERs) issued between 1982 and 2005. We obtain a …-to-fundamental ratios, and have strong prior stock price performance. We develop a model to predict accounting misstatements. The output of …

that is attributable to the widespread use of conservative accounting methods and/or diminishing marginal returns to new …

consistent with a combination of over-investment and aggressive accounting …

Bushman and Smith (2000) provide a useful review of research on the role of accounting in management compensation … contributions of accounting scholars to governance research and highlighting research opportunities on the role of financial … accounting in governance mechanisms other than managerial incentive contracts …