We examine the role of Chief Executive Officer (CEO) power in the selection of accounting financial experts (AFEs) to audit committees. Our results show that firms with powerful CEOs have a lower likelihood of appointing AFEs to the audit committee. Furthermore, firms with powerful CEOs are less...

We examine a firm’s decision to announce a cut to CEO pay in response to challenges arising from the COVID-19 pandemic. The rationale behind these announcements and the extent of the pay cuts, however, have been widely questioned. Specifically, we examine whether the announcement of a CEO pay...

This paper builds on and contributes to the currently emerging literature on CFO’s compensation and turnover. We focus on the association between the CFO’s compensation and turnover and his/her “accounting talent.” We contend that the accounting talent of CFOs can be measured by...

This paper provides evidence on the use of discount rates for calculating defined benefit liabilities (DBL), and their impact on value relevance and audit fees for Australian listed companies between 2011 and 2016. We document that the average discount rate is 3.96% but the yearly...

This paper examines the systematic difference between interim and fourth quarters in managerial decisions to engage in accruals and real activities management to meet analysts' quarterly earnings forecasts. Findings reveal that managers engage in income-increasing accounting accruals...

This paper develops a new empirical measure of market expectations of future earnings, referred to as ‘market implied earnings’ by reverse engineering the Residual Income Valuation Model based on actual share prices. Since share prices reflect all information available to investors, market...

Using a sample of real estate investment firms adopting IFRS, we evaluate the value relevance of Level 3 fair values and whether it is impacted by the actual underlying assumptions. This context is unique in that there is generally only one material asset type (investment properties) and they...

The paper examines the productivity of knowledge propagation for Chinese technological companies. We develop a novel methodology to measure the knowledge depth and breadth using patent citation networks that account for the flow of knowledge across patents. Results suggest that the narrow focus...

Investors encounter integration costs which prevent them from processing accounting information effectively for investment decisions. This paper provides the first direct empirical evidence on whether accounting quality affects investors’ efforts and hence the costs in integrating financial...