Under present financial accounting standards, in Japan and in U. S, the firms can choose the pension discount rate, that is used only for earnings measurement, at their discretion. This paper investigates, first, what factors affect the choice of the pension discount rate. The sample firms in...

The purpose of this paper is to investigate the value relevance of earnings by two steps. First, we identify the factors that introduce transitory earnings into the reported earnings. Next, we reexamine the value relevance of earnings by controlling those factors. In first step, we investigate...

The purpose of this paper is to investigate the value relevance of earnings by two steps. First, we identify the factors that introduce transitory earnings into the reported earnings. Next, we reexamine the value relevance of earnings by controlling those factors. In the first step, we...

The value relevance of earnings is generally affected by macro-economic environments and micro-economic competitive conditions. Therefore, the relevance differs by industries and by periods. In order to examine the variation in the relevance directly, simply and clearly, it is necessary to...

In 2000, the reform of consolidated financial statements changed the income statement section where amortization of goodwill and gains and losses from interest method should be disclosed. The results in this paper show that the reform may improve the value relevance of operating profits and...

This study investigates the value relevance of nuclear decommissioning costs and back end costs (nuclear recycle costs), which are accruals related to nuclear power plants in electric utilities. We analyze the association between those accruals and stock price levels at the end of fiscal year,...

The main purpose of this research is to investigate the rationality of current form of income measurement and reporting in Japan. In this paper, net income is divided into three components: 1) operating profits, 2) gains and losses from non-core operating activities and financial activities, and...

The purpose of this paper is to confirm how international academicians evaluate the Japanese accounting system. This paper surveys prior studies on the international comparison (including Japan) of accounting information and reexamines the empirical findings on the usefulness of earnings...

This paper investigates the value relevance of earnings in four transportation industries (railroad, transportation by land, shipping, and warehouse). The business environments in those industries are not the same as those in manufacturing industry, since a part of transportation business in...

This paper investigates the value relevance of earnings in the electricity, gas and petroleum (refining) industries. Although these industries belong to the same category, i.e. energy industry, the value relevance of earnings differs in industries and periods. Their relevance is determined by...