This research examines the valuation effect and the factors associated with firms' decisions to expense executive stock options, as well as determinants of market reaction to expensing announcements. The likelihood of expensing is found to be higher for firms subject to fewer agency problems and...

Purpose: This paper evaluates the development of reporting standards for both financial reporting and for corporate social responsibility reporting. We argue that both IFRS and US GAAP are vehicles of colonial exploitation and cannot be sustainable. This can be contrasted with the voluntary...

This expansion in the usage of information technology (IT) in organizations affects the financial audit. This technology rich environment can significantly impact how auditors meet the audit objectives. In recognition of these developments, the United States Auditing Standards Board (ASB) issued...

This paper aims at understanding the recent evolution of Chinese accounting standards while focusing on the accounting for business combinations as case of reference. A comprehensive comparative analysis between International Accounting Standards Board's and Chinese accounting standards is...

We find that brand assets recognized by 33 U.K. firms are value relevant, i.e., associated with market values. Most previous studies on the value relevance of intangible assets have examined outsiders' valuations; our study adds to the literature by showing the relevance of managers' valuations...

This paper discusses the process being used in Bosnia to convert the books of Bosnian enterprises so that they will comply with the new Bosnian accounting standards, which are identical to International Accounting Standards. Bosnian accountants were generally not familiar with the new rules,...

In this paper, we empirically examine the relationship between two audit committee characteristics - the composition (expertise and independence) and size of the audit committee - and the quality of financial reporting. We show that after controlling for firm size, board composition, a measure...

I develop an ex-post conservativism measure (that identifies conservatism based on whether firms understate or overstate earnings) rather than an ex-ante conservatism measure (that suffices as a governance mechanism [such as conservative accounting rules] to compel managers to be conservative)....

Khan and Watts (2009) develop a firm-year measure of conditional conservatism, labeled C_Score, that builds on the Basu (1997) asymmetric timeliness (AT) measure. However, recent research documents an asymmetric relation between lagged earnings and current returns, indicative of bias in the Basu...

We suggest a full consolidation approach that takes into account the property rights structure within the subsidiaries, in particular, the majority requirements on restructurings. Our approach employs a property rights index based on cooperative game theory