We reexamine the relationship between accounting conservatism and the profitability and risk of acquisitions, by comparing acquisition-related profitability and risk before and after SFAS 142 (2001). SFAS 142 eliminated the periodic amortization of goodwill, replacing it with an annual fair...

We examine the relation across firms and industries between the stock market's valuation of Ramp;D expenditures and the fundamental benefits due to, and the risk of, the Ramp;D outlays. We hypothesize and find that the market's valuation of Ramp;D varies across firms and industries, and that it...