We examine differences in CEO achievement of EPS goals set separately through analyst forecasts and firm bonus plans. Having different goals for the same performance metric enables us to assess their relative importance in incentivizing CEOs. We find CEOs frequently achieve analyst forecasts,...

Recent work in management accounting offers several novel insights into firms' cost behavior. This study explores whether financial analysts appropriately incorporate information on two types of cost behavior in predicting earnings - cost variability and cost stickiness. Since analysts'...

We investigate the relationship between cost stickiness and management earnings forecasts. Prior research suggests that earnings are more volatile for sticky cost firms resulting in greater earnings forecast errors. The greater forecast errors might increase investors' demand for information and...

This article analyses the eighteenth-century accounting practices of the Japanese trading station or factory of the Dutch East India Company (Vereenigde Oost Indische Compagnie or VOC). The factory's trade and its reported profits declined during the eighteenth century, but because of the...

We find that price and earnings momentum are pervasive features of international equitymarkets when controlling for data snooping biases. For European countries, we find that pricemomentum is subsumed by earnings momentum on an aggregate level. However, this rationaledoes not apply to each and...

Purpose - Since the 1960s earnings management has been a widely researched area and became presumably known by the current accounting scandals. This paper aims at empirically showing which factors affect earnings management. Design/methodology/approach - According to former research literature...

The purpose of our study is to further understand managerial incentives that affect the volatility of reported fiscal-year earnings. We do this by examining income smoothing based on pseudo fiscal years. For each firm, we create pseudo-year earnings using four consecutive quarters other than the...

Purpose of the article: This study investigates the effect of historical cost accounting on the reported profit of a company, with an evaluation of current cost accounting as an alternative reporting method in a high-inflationary and volatile economy as experienced in Nigeria. Using secondary...

Using a novel dataset, we show that components of firms' GAAP earnings stemming from ancillary business activities or transitory shocks are significant in frequency and magnitude. These components have grown over time and are dispersed across various sections of the 10-K. Excluding them from...

The study applies two-stage data envelopment analysis (DEA) and bootstrap to estimate the Profit Efficiency (PE) and its factors for Indian bank groups. Recognizing the heterogeneity in the bank sizes, we perform DEA to estimate PE for small, medium, and large banks across different ownership....