It is true that today's business world has been characterized by moral bankruptcy violating all norms of good business ethics which, in turn, has caused mounting economic (financial problems) due to frequent company and bank failures and insolvencies, the result of their engaging in fraudulent...

Four new ratios, that capture firms' Stability, Downside Risk and Audit Quality, are significant predictors of financial distress as evidenced by bankruptcy. Moreover, they improve substantially a logit based credit metric when combined with other classic ratios. A credit metric that comprises a...

This study examines the impact of cross-firm financial statement comparability on theregulatory oversight of financial reporting quality. Consistent with the notion that cross-firmcomparable accounting systems enhance the regulators' ability to evaluate financial reportingquality, we find that...

This study investigates the combination of textual and numerical accounting disclosures, which are often examined in silos by prior research. Focusing on three inherently complicated footnotes, we capture the amount of text used to explain numbers with the ratio of words to numbers. Using...

This study examines whether the application of an accounting fundamental strategy to select stocks of a portfolio can systematically yield significant and positive excess market buy-and-hold returns after one year of portfolio formation. Using financial statement information and the “direct...

"Big data" and "visual displays" are currently hot topics in accounting. We present a way of depicting weekly financial statement data in a user-friendly format, using the sparkline feature in Excel. By embedding sparklines in traditional income statements, balance sheets and cash flow...

This document describes the spreadsheets and the related textual narratives that we have developed for FSA and valuation. These spreadsheets and their related documents are available for free at http://www.godeohlson.com/. These spreadsheets can be used for two purposes: (1) teaching FSA and...

SFAS No. 123(R) requires firms to recognize the fair value of stock options as compensation expense over the vesting period of the options. Thus, SFAS No. 123(R) leads to an overall increase in financial statement conservatism. However, it is not known whether SFAS No. 123(R) increases...

The primary purpose of the current study is to examine the effectiveness of three popular forensic accounting tools to detect financial statement fraud at a real US-listed firm, whose accounting practices were investigated by the US Securities and Exchange Commission (SEC). In this paper, I...