Natural disasters in Australia have caused significant damage to the local economy and businesses. This paper employs the event study methodology to examine the natural disaster induced equity market reaction using daily equity return of 32 Australian firms within the following seven major...

The research is aimed at verifying the value relevance of accounting information with reference two different stock markets: the UK and the Italian one.Starting from the Edward, Bell and Ohlson's approach, different regression models have been implemented, analyzing – for a three year period...

It is common practice in corporate valuation with discounted cash flow models to refer to the Capital Asset Pricing Model (CAPM) to estimate the rate of return required by investors. However, based on empirical studies of the US stock market, primarily Ibbotson and Morningstar (2008) and...

Using monthly and quarterly cross-sectional dispersion in firm level earnings news as a proxy for investor uncertainty about the implications of current aggregate earnings for future discount rates, I find that higher investor uncertainty leads to a lower stock market reaction to aggregate...

This article examines the return characteristics of a portfolio of US 'vice stocks', firms that manufacture and sell socially irresponsible products such as alcohol, tobacco, gaming services and national defense. First of all, I construct a portfolio using the daily returns of 41 vice stocks...

China's stock market has gone through major structural changes since its inception in early 1990s. In this survey article, we review the empirical literature that document these important structural changes and published in 15 leading accounting and finance journals from 1998 to 2013. In...

We address how value relevance of accounting information evolved as the new economy developed. Prior research concludes accounting information—primarily earnings—has lost relevance. We consider more accounting amounts and find no decline in combined value relevance from 1962 to 2014. We...

Hirshleifer et al. (J. Account. Econom. 38 (2004)) and Taffler, Lu and Kausar (J. Account. Econom. 38 (2004)) document large and statistically significant abnormal returns from trading on balance sheet data and audit opinions. However, the statistical tests ignore high transactions costs,...

Most international stock exchanges distinguish solely between domestic and foreign issuers, whereas in Germany, issuers can choose between two market segments with diverse transparency levels: the Prime Standard and Non-Prime Standard segment. Transparency requirements for the Non-Prime Standard...