We hypothesize debt markets - not equity markets - are the primary influence on quot;associationquot; metrics studied since Ball and Brown (1968). Debt markets demand high scores on timeliness, conservatism and Lev's (1989) R2, because debt covenants utilize reported numbers. Equity markets do...

We provide evidence on the characteristics of local-GAAP reported earnings for firms choosing to cross list in US markets relative to both a matched sample of foreign firms currently not choosing to cross list and a matched sample of US firms. Our evidence suggests that cross-listing firms...

We provide evidence on the characteristics of local-GAAP earnings for firms cross listing on US exchanges relative to a matched sample of foreign firms currently not cross listing in the US to investigate whether US listing is associated with differences in accounting data reported in local...

In this brief essay, prepared as part of a symposium on The New Federalism: Plural Governance in a Decentered World, I explore the regulatory dynamics at work: (1) in the operation of Securities Exchange Act Rule 14a-8, (2) in the interventions of then-Attorney General Eliot Spitzer in the...

I review empirical research on the relation between capital markets and financial statements. The principal sources of demand for capital markets research in accounting are fundamental analysis and valuation, tests of market efficiency, and the role of accounting numbers in contracts and the...

We offer an economic framework for generating predictions about the demand for conservative accounting reports. We define conservatism as: More timely recognition of losses than gains as a result of the costs and benefits of reporting verifiable information by managers and/or firms being...

This paper examines the relation between accounting method choice and investment by US institutional investors in non-US firms. Such a relation could be driven by two factors. First, quot;home biasquot; in US investment could result in preferences for accounting practices familiar to US...

This paper examines the relation between accounting method choice and investment by US institutional investors in non-US firms. Such a relation could be driven by two factors. First, home bias in US investment could result in preferences for accounting practices familiar to US investors. The use...

This study investigates whether IFRS (International Financial Reporting Standards) improves the usefulness of accounting information in a chosen code-law country (i.e. Finland) that has a strong system of legal enforcement and high quality domestic accounting standards. Empirical analyses based...

In a lot of countries, not only one but several sets of accounts have to be prepared and disclosed by (holding) companies. This paper inquires into possibly different economic functions of these sets of accounts by looking at the German dual financial reporting system, in which company (single)...