With the growth in multinational business operations and greater use of international sources of finance, there has been a trend to increased uniformity in accounting and auditing standards. However, uniformity in auditing also requires uniformity in the application of those standards. This...

Accounting statements keep by the key source for processing financial analyses of enterprises. The healthy enterprise should have been able to load the object of her activities, to reach constantly required measurement estimation of the contribution of capital for investors, with thinking about...

The empirical evidence suggests that firms overpay for fraud liability and overspend on internal compliance mechanisms (which are not very effective at preventing fraud). Yet, insiders who commit fraud are rarely sanctioned for their wrongdoing, which produces moral hazard and individual...

While aggregate earnings should affect aggregate stock returns, standard portfolio theory predicts that the cross-sectional dispersion in firm-level earnings would not affect aggregate stock returns. Nonetheless, this paper demonstrates a surprisingly robust relation between cross-sectional...

This paper studies the effects of capacity utilization on accounting profit margins and stock returns. Since accounting profit margins represent the average profit per unit and not the economists' concept of unit contribution margin, the marginal/variable profit per unit, a firm with idle...