In 2001 the Financial Accounting Standards Board issued FAS 142 Goodwill and Intangible Assets, which expanded the accounting guidance for intangible assets. These changes were particularly significant for companies in industries that rely heavily on intellectual capital to generate future cash...

Using a system of three simultaneous equations, we test the predictions of Datar, Feltham, and Hughes 1991 and Hughes 1986 between auditor choice, earnings disclosures, and retained ownership in U.S. firms making initial public offerings of securities. Using a sample of initial public offerings...

In this paper I review the literature and discuss the current state of affairs in marketbased accounting research with respect to the Efficient Markets Hypothesis (EMH). Empirical documentation of the post-earnings announcement drift anomaly seems to have formalized a crisis for the efficient...

The Sarbanes-Oxley Act of 2002 brought wide spread changes to financial reporting. Companies now must report on internal control deficiencies. There are criminal penalties for false certification of financial reports. The new Public Company Accounting Oversight Board was established. And audit...

We use data from Taiwan where audit partners are required to sign audit reports to examine whether audit partners compromise their independence for economically important clients. Uniquely, we include both listed and unlisted clients in audit partners' client portfolios and separately study...

This study examines differences in the characteristics of analysts' forecasts of earnings for keiretsu and non-keiretsu firms in Japan. Japanese industrial organization is characterized by enterprise groupings, keiretsu, composed of firms in different industries, but interrelated through...

This paper examines the effect of Japanese corporate groupings, keiretsu, on the informativeness of earnings. Keiretsu firms maintain close financial and personal ties through cross-shareholding, credit holding, interlocking corporate directorates, and various business transactions. We propose...

Audit quality can potentially affect bank examiners' evaluation of bank condition. We examine the association between Sheshunoff bank ratings, a proxy for regulatory attention, and auditor size, a proxy for audit quality, for a cross-section of 252 banks in 1996. The tests indicate that banks...

We use differences in U.S. GAAP and Japanese-GAAP accounting measures to evaluate the value-relevance of U.S.-GAAP reports. We show data provided in U.S. GAAP financial statements of Japanese firms is value-relevant beyond that contained in domestic-GAAP statements. Our results complement extant...