This study tests assertions that Economic Value Added (EVA) is more highly associated with stock returns and firm values than accrual earnings, and evaluates which components of EVA, if any, contribute to these associations. Relative information content tests reveal earnings to be more highly...

Computer-intensive methods are a recent development in the theory of statistics with potential applicability in audit and accounting sampling. Whereas traditional sampling approaches can require complex analytics and questionable distributional assumptions, computer-intensive methods generate...

Associations between accounting earnings and stock returns are modeled and tested by examining relationships between earnings response coefficients and industry structure characteristics. Response coefficients are estimated using a new approach that does not require proxies for market earnings...