The quality of earnings is said to be high if it can be directly attributed to fundamental economic factors like higher revenues or lower costs rather than through accounting shenanigans. This study considers how the two different financial reporting regimes used in Canada and in the US impact...

This paper provides preliminary evidence of the impact on financial ratios caused by the transition to International Financial Reporting Standards (IFRS) in Canada. The main features of IFRS are explained in the context of a shift from Canadian Generally Accepted Accounting Principles (GAAP)...

MD&A content has been an ongoing topic of recent debate with the views divided on the impact that regulated content has on the quality of the MD&A. Complexity has amplified as a result of emerging issues of particular importance to investors such as transition to IFRS, the environment and...

This paper studies the macroeconomic implications of firms' investment composition choices in the presence of credit constraints. Following a negative and persistent aggregate productivity shock, firms shift into short-term investments because they produce more pledgeable output and because they...

We develop a dynamic model of investment, capital structure, leasing, and risk management based on firms' need to collateralize promises to pay with tangible assets. Both financing and risk management involve promises to pay subject to collateral constraints. Leasing is strongly collateralized...

Our study confirms that the financial constraints of the SME's growth tend to appear as an excess of sensibility of the investment expenditures on the firm's cash flow. Through the application of dynamic panel data techniques to an extended version of Eulero's investment equation of a sample of...

The present contribution deals with the quantification of capital costs. The contribution is written on a theoretical basis. The costs will be particularly quantified in financing only by equity and only by debt capital and particularly in the so-called mixed financing in which weighted average...

Given the global financial crisis and, particularly, the European sovereign-debt crisis, European countries have the urgent need to promote output growth. However, due to the current financial constraints, it is difficult for the Governments to stimulate economic growth by directly increasing...

This paper shows that non-convex costs of financial adjustment are quantitatively relevant for explaining firm dynamics. First, empirically, financial activity is lumpy, more than investment activity. Second, non-convex costs are necessary, in the context of a dynamic investment and financing...

Our study confirms that the financial constraints of the SME's growth tend to appear as an excess of sensibility of the investment expenditures on the firm's cash flow. Through the application of dynamic panel data techniques to an extended version of Eulero's investment equation of a sample of...