In this paper, we examine the predictive ability of direct cash flow information under IFRS. Employing a combination of in- and out-of-sample cross sectional models, we provide the first empirical evidence on the predictive ability of direct cash flow information in an IFRS environment. Under...

By analyzing a carefully constructed earnings announcements sample that discloses a 'pro forma' earnings number, Bhattacharya, Black, Christensen, and Larson (2002) contribute to recent research documenting increasing differences between GAAP earnings and alternative earnings definitions...

This study investigates whether market participants perceive pro forma earnings to be more informative and more persistent than standard GAAP operating income by analyzing a sample of 1,149 actual pro forma press releases issued between January 1998 and December 2000. We find that pro forma...

For many years, international financial reporting – and in particular the notes reporting – has been criticized in practice and academia for failing to provide information that is appropriate for its intended users. This criticism points to deficits with regard to the content and...

This paper intends to analyse and elucidate the impact of Fair Value Accounting on the banking industry in general and Indian Banking in particular in the light of the move towards convergence to International Financial Reporting Standards across the globe. In the light of criticism against fair...

The paper presents the approach for the verification of the lemma used for the model for reputation risk for subsidiaries of non-public group with reciprocal shareholding as proposed by the author in priory works. For all entities with the absolute value of the reputation risk greater than the...

This paper intends to analyse and elucidate the impact of Fair Value Accounting on the banking industry in general and Indian Banking in particular in the light of the move towards convergence to International Financial Reporting Standards across the globe. In the light of criticism against fair...

We test for changes in investment efficiency around a shock to financial reporting quality—the adoption of SFAS No. 123R, which requires that employee stock option (ESO) costs be recognized rather than disclosed at fair value. We predict and find a reduction in underinvestment for firms...

Our study examines firms’ motivation to issue hybrid bonds. Hybrid bonds have been issued in more than 15 different countries around the world and have been the most relevant class of hybrid securities in these countries since 2005. A hybrid bond offers several structuring opportunities....

We review recent literature on the role of financial reporting transparency in reducing governance-related agency conflicts among managers, directors, and shareholders, as well as in reducing agency conflicts between shareholders and creditors, and offer researchers some suggested avenues for...