We consider stock markets in 20 countries to investigate whether the accruals anomaly (Sloan 1996), characterized by U.S. stock prices overweighting the role of accrual persistence, is a local manifestation of a global phenomenon. In addition, we structure our analysis to determine if the...

This paper uses the traditional event study method to examine the information content of annual Danish earnings announcements. Using data from 1999-2001 we find abnormal volatility in the days surrounding the earnings announcements, indicating that the announcements do in fact contain...

This paper examines whether analysts resident in a country make more precise earnings forecasts for firms in that country than analysts who are not resident in that country. Using a sample of 32 countries, we find that there is an economically and statistically significant analyst local...

Using a large sample of earnings announcements made by firms belonging to Korean chaebols, we examine propping (i.e., negative tunneling) within a chaebol. Consistent with the market's ex-ante valuation of intra-group propping, we find that the announcement of increased (decreased) earnings over...

This study provides descriptive evidence on the controversial trend adopted by many firms in recent years of reporting earnings figures on a "pro forma" basis. Pro forma earnings exclude normal income statement items that managers deem to be nonrecurring or nonrepresentative of ongoing...

This study provides descriptive evidence on the controversial trend adopted by many firms in recent years of reporting earnings figures on a "pro forma" basis. Pro forma earnings exclude normal income statement items that managers deem to be nonrecurring or nonrepresentative of ongoing...

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...

There is a high level of interest in the relative merit of principles based standards versus rules based standards. At the heart of the debate appears to be the level of discretion available to managers under the alternative approaches, the consequence of which is perceived to be earnings...

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...