Showing 1 - 10 of 51
We examine the effect of IFRS (International Financial Reporting Standards) on the type of performance measures firms … use to evaluate and reward their managers. We show that post-IFRS firms decrease the weight of Earnings-per-Share (EPS …)-based performance measures in CEO pay contracts. We argue that IFRS add “noise” to accounting numbers which, based on optimal …
Persistent link: https://www.econbiz.de/10011116256
We examine whether UK managers exploited the discretion provided in the UK GAAP to IFRS reconciliation process to … existence of an accounting-related vesting target in their pay schemes, CEOs use UK GAAP to IFRS reconciliations as an earnings …
Persistent link: https://www.econbiz.de/10013067035
We examine the effect of IFRS on the use of accounting-based performance measures for evaluating and rewarding managers …. We show that post-IFRS firms decrease the weight of Earnings-per-Share (EPS) based performance measures in CEO pay … contracts. We provide indications that IFRS add “noise” to accounting numbers which, based on optimal contracting theory, makes …
Persistent link: https://www.econbiz.de/10013114450
Persistent link: https://www.econbiz.de/10013209876
We examine whether UK firms engage in earnings management or forecast guidance over theperiod 1994−2002 in order to ensure that their reported earnings meet analyst earnings expectations.We explore two earnings management mechanisms: a) the use of positive abnormal working capitalaccruals and...
Persistent link: https://www.econbiz.de/10005870180
We explore the capital market consequences of achieving analyst earnings expectations,distinguishing between expectations achieved genuinely or through earnings guidance ormanagement. We examine an inclusive set of earnings management tools: real earningsmanagement, working capital accruals...
Persistent link: https://www.econbiz.de/10005870328
This paper investigates the motives for disclosing an alternative earnings per share (EPS) figure. In particular, we extend prior findings for the UK (Choi, Lin, Walker & Young, 2007) by highlighting the role of managerial contracting in the alternative EPS disclosure choice. We examine a...
Persistent link: https://www.econbiz.de/10010741748
The paper examines three benchmark earnings concepts: (i) permanent earnings with the cost-of-equity determining the capitalization, (ii) permanent earnings with the risk-free rate determining the capitalization, and (iii) economic earnings (Hicks's concept). The concepts can be measured...
Persistent link: https://www.econbiz.de/10012968157
We provide a methodological contribution by developing, describing and evaluating a method for automatically retrieving and analysing text from digital PDF annual report files published by firms listed on the London Stock Exchange (LSE). The retrieval method retains information on document...
Persistent link: https://www.econbiz.de/10012903173
We develop a comprehensive measure of the quality of corporate financial communication. Net bad flows (NBF) captures bad news withholding and is calculable for all listed companies using daily stock return data. NBF indicates the relative lumpiness of bad news flows during the fiscal period. We...
Persistent link: https://www.econbiz.de/10012903205