Showing 1 - 10 of 75
Prior research suggests that managers may use earnings management to meet voluntary earnings forecasts. We document the extent of earnings management undertaken within Canadian Initial Public Offerings (IPOs) and study the extent to which companies with better corporate governance systems are...
Persistent link: https://www.econbiz.de/10014187007
After the release of the final accounting standards for impairment in July 2014 by the IASB, banks will face the next significant methodological challenge after Basel 2. In this paper, first methodological thoughts are presented, and ways how to approach underlying questions are proposed.It...
Persistent link: https://www.econbiz.de/10013004047
This study examines the effects of mandatory IFRS adoption on accounting-based prediction models for CDS spreads for a sample of 357 firms in 16 IFRS-adopting countries. We do this by estimating accounting-based prediction models for CDS spreads separately for financial and non-financial firms...
Persistent link: https://www.econbiz.de/10012973166
This paper develops and tests a simultaneous equations model (SEM) for extending accounting based valuation models used in empirical studies. To calculate the ‘other information' variable in the Ohlson (1995) model, we derive forecasts of operating income from the SEM, rather than using...
Persistent link: https://www.econbiz.de/10012953800
In this study, we examine the effect of accrual-based earnings management on the association between managers' earnings forecast errors and accruals, which we label “managers' accrual-related forecast bias.” We build on extensive research which finds that managers engage in accrual-based...
Persistent link: https://www.econbiz.de/10012955306
The capital market benefits of high quality financial reporting create incentives for managers to signal the quality of their voluntary disclosure practices. Prior research focuses on the relations between observable measures of earnings quality and observable measures of voluntary disclosure...
Persistent link: https://www.econbiz.de/10013037691
In this paper, we employ the earnings model developed in Ashton and Wang (2013) to forecast the one- to three-year ahead earnings of individual companies. We find that the model produces forecasts of future earnings that are less biased and more informative than both the consensus analysts'...
Persistent link: https://www.econbiz.de/10012987876
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...
Persistent link: https://www.econbiz.de/10012911387
Predicted stock issuers (PSIs) are firms with expected “high-investment and low-profit” (HILP) profiles that earn unusually low returns. We carefully document important features of PSI firms to provide insights on the economic mechanism behind the HILP phenomenon. Top-PSI firms are...
Persistent link: https://www.econbiz.de/10012902654
We investigate whether a firm's market power within its product market affects management sales forecast behavior. Our examination of the relation between market power and management sales forecasts is motivated by the notion that sales forecasts differ from other types of forecasts because...
Persistent link: https://www.econbiz.de/10012904107