For the period of 2006 to 2008, we collect Comment Letters issued by the SEC that question the application of US GAAP by US firms or the application of IFRS by European firms registered with the SEC. We investigate whether institutional investors react to the letters by changing their holdings...

We develop and test accounting-based valuation models for commercial banks. We extend Begley et al.'s (2006) framework and propose a valuation model where goodwill is generated by virtually all commercial and investment banking activities. Key features of our model are: the development of a...