The relation between stock returns, earnings and cashflows is of importance because it directly addresses the issue of whether accounting data provide value relevant information. The empirical evidence to date, however, has documented low explanatory power for earnings and inconclusive...

Traditional financial reporting has long been the cornerstone of investor confidence. Until now, it has served us well in global capital markets. Yet recent dramatic changes in technology and in the global environment are giving rise to the preeminence of knowledge as both a business cost and...

Recent advances in information technology allow firms to provide broader access to their disclosures. We examine the determinants and effects of the decision to provide unlimited real-time access to conference calls (i.e., quot;openquot; conference calls). Our evidence suggests that the decision...

This paper examines the effect of corporate governance on investor reactions to accounting choice in the context of accounting for business combinations. Using a sample of 324 recent stock swap acquisitions I find that, contrary to practitioners' belief that capital markets penalize purchase...

The paper assesses the value of the information contained in management's determination of the accounting treatment for software development costs. The assessment is made in the context of the initial public offerings (IPO) market and is based on the effect of the accounting treatment on...

This paper sheds light on the economics of Internet firms by extracting information on major value-drivers from their stock prices. Contrary to conventional Wall Street wisdom that there is little or no method in the pricing of Net stocks, I find that basic accounting data are highly...

The adverse consequences of poor earnings quality have been the subject of significant debate among academics, practitioners and regulators. However, the empirical evidence on pricing implications of earnings quality is sparse and controversial. We examine one potential consequence of poor...

Information asymmetry in financial markets relates to the idea that one party to a transaction has better information than the other. Since financial reporting involves the transmission of value relevant enterprise information, we investigate whether the quality of reported earnings can...

Our paper explores whether reducing management discretion in the reporting of performance is value relevant to capital markets. The study is driven by concerns raised by standard setters and others about the usefulness of performance reporting under Generally Accepted Accounting Principles...