Describes the objectives herein as examining auditors’ ethical sensitivity to assess risk of fraud in financial reporting. Gives background literature as the opening section, and this is followed by a section in which the investigation method is described, study results are then discussed,...

Examines whether two key audit committee characteristics combined, activity and independence, reduce likely fraud or aggressive financial statement actions. Utilizes evidence on potential of Blue Ribbon Committee (1999) recommendations regarding composition of audit committees, and further...

This article uses Granger‐causality tests to study the dynamic relationship between stock returns and dividend yields in the American and Japanese equity markets. The “signaling” hypothesis of dividends along with the efficient market hypothesis is considered to : a) explain the strong...

This study examines predicability and volatility in three major stock markets, (the US, UK, and Japan) using the Vector Autoregressive Approach and the Multivariate Autoregressive Conditional Heteroskedastic‐in‐mean (ARCH‐M) approach. We find that in the three markets: a) stock returns are...

Summarizes previous research on factors affecting the market value of a firm’s equity and puts forward a mathematical model based on the idea that its investment opportunity set is positively related to reputation, multinationality, size and profitability; and negatively related to leverage...

Refers to previous research to suggest that US commercial bank managers use discretion to “manage” regulatory capital and that accounting discretion can influence a bank’s investment opportunity set (IOS) and therefore its share price. Challenges the assumption that using accounting...

Summarizes previous research on the impact of the investment opportunity set (IOS) on firm financing, dividend and compensation policies, develops hypotheses on the effects of IOS changes on these three areas and tests them using 1980‐1989 data from a sample of US firms moving high and low IOS...

Summarizes previous valuation models based on accounting information, extends the basic model to include dividends and retained earnings, and develops hypotheses on the relationship between share prices, dividends and earnings for firms with different investment opportunity set (IOS) levels....