The concept of conditional conservatism has provided new insight into financial reporting and has stimulated considerable research since Basu (1997) developed it. While the concept encapsulated in the adage “anticipate no profits but anticipate all losses” is reasonably clear, estimating it...

This paper investigates the relationship between fair value accounting and the behavior adjustment of commercial banks which is aimed at catering to the regulatory requirements by using a dataset from Chinese listed commercial banks from 2007-2011.The empirical results show that (1) The...

We present 60 experienced credit analysts with financial information for two firms: one that mainly outsources production and one that does not. We find that analysts are better able to identify firm characteristics that make an outsourcer more creditworthy when those characteristics are...

We introduce a measure of customer franchise value for subscription–based companies — a fast growing and vital sector of the economy. This measure is based on information voluntarily disclosed by some, but not all, firms. Controlling for self-selection, we examine the measure's information...

This study examines the main problem raised by pro forma earnings (or “street” earnings) because investors may have trouble focusing their attention when they are relying on this information to make decisions about investing in French publicly traded securities.This article, based on 116 pro...

This paper examines the usefulness of International Accounting Standards (IAS) in a transitional economy, the People's Republic of China (PRC). Using a sample of firms that provide financial reports under both IAS and more rigid local PRC standards, we conclude that information produced using...

Discount rate selection represents a centrally material factor impacting valuation models. Given the strong reliance on discounted cash flow modelling as a basis for determining an assets recoverable amount, the judgement exercised by reporting entities regarding rate selection is of paramount...

This work outlines a model used to estimate the fair value (or current exit value according to IASB terminology) of Italian participating policies. The two characterizing features of Italian participating policies are adequately considered (the model considers stochastic interest rates and bond...

Ernstberger and Vogler (2007) employ the concurrent use of three distinct accounting standard regimes (German GAAP; U.S. GAAP; and IAS/IFRS GAAP) in Germany as a foundation for evaluating the relation between accounting standard regime and equity return attributes. They find that firms using...