Purpose – This paper aims to examine the concerns that high‐tech “new economy” companies employ aggressive revenue recognition practices to boost stock prices. Design/methodology/approach – The authors test empirically the hypothesis that revenue is more value relevant than other key...

This paper examines the assertion that the financial market pays fixed PE multiples and that the recognition of goodwill and subsequent amortization depresses earnings and stock prices, putting U.S. firms in a competitive disadvantage in the international merger and acquisition arena. Evidence...

This study examines the ability of fundamental summary measure Pr to predict earnings change for the subsequent year, the association of Pr and stock returns, and the relationship between Pr and risk factors beta and size. Pr is a probability index generated by logistic model and financial...