Earnings announcement affects respective firms’ share prices based on their performances. Financial markets react to the bottom figure of the financial statements, which the authors believe include earnings management components. Similarly, earnings surprise also affects the market share....

Purpose: The purpose of this paper is to examine how accounting conservatism affects the relation between current stock returns, current earnings, and future earnings. Design/methodology/approach: To achieve the purpose of this paper, we divide accounting conservatism into conditional and...

I argue that external financial reporting quality has at best a 2nd order effect on firm value of U.S. publicly traded companies and that attempts to improve a firm's external reporting quality has a 3rd order effect on these firms' value. Recognizing that external financial reporting quality is...