This research explores the use of control rhetoric in CEO letters between the pre and post Sarbanes Oxley periods and examines financial statement users' perception of internal controls and company performance from the CEO letter. We compare the amount of control rhetoric included in CEO letters...

On the basis of deductive considerations applying professional judgement, the article focuses on the additional value of accounting information that can be given to the users of financial statements by a properly prepared statement of cash flows. It is based on the finding that the professional...

Under profit-based transfer pricing methods, the selection of comparable companies is essential if detection of transfer price manipulation is to be reliable. Comparative advantage as embedded in internalisation theory argues that foreign controlled companies should, in the long run, display...

Recent studies have questioned the validity of the Basu asymmetric timeliness of earnings (AT) as the proxy for accounting conservatism. An important basis for the criticism is the negative association observed between AT and market-to-book ratio (MB), another proxy for conservatism. Drawing...

We find that firms with insider sales executed under Rule 10b5-1 plans exhibit a higher likelihood of meeting or beating analysts' earnings expectations (MBE). This relation between MBE and plan sales is more pronounced for the plan sales of chief executive officers (CEOs) and chief financial...

We assess the use of bank loan information in predicting the timing to default. We use unique data on defaults in small and medium enterprises maintained by the Central Bank of Portugal which includes financial accounting and macroeconomic indicators, as well as non-financial information. The...

In this study I examine whether balance sheet and income statement numbers have lost or regained their relevance over the last 30 years. Institutional and macroeconomic factors like the global trend towards strengthening regulation and harmonizing financial reporting, the extended use of fair...

Für die Zwecke der Nutzungswertbestimmung nach IAS 36 Impairment of Assets sind die Cashfl ows, die aus der künftigen Nutzung des betrachteten Vermögenswerts und dessen Abgang erwartet werden, mit einem Vorsteuer-Diskontsatz abzuzinsen, der unabhängig von der Kapitalstruktur des...

We use data from China to examine whether regulations that limit management influence over auditors improve audit quality. China's State-owned Assets Supervision and Administration Commission of the State Council (SASAC) issued two rules in 2004 aimed at improving audit quality for state-owned...

We discuss the accounting rules that apply to reporting a U.S. company's international operations. We use examples to illustrate diversity in accounting and offer caveats for policy makers, standard setters, analysts, and researchers regarding their interpretation and use of financial accounting...