We construct a large sample of 21,608 firm-years with International Financial Reporting Standards (IFRS) adopters and non-adopters from 34 countries over the 1998-2004 period, and evaluate differences in the implied cost of capital between the IFRS adopters and the non-adopters. We also...

To an increasing degree, companies are interested in the separate value of intangible assets. The need for separate valuation partly arises from new international accounting standards of the International Accounting Standards Board. Under certain conditions, these accounting standards allow the...

Prior studies on the incremental predictive ability of accrual models over cash flow models with respect to future cash flows have led to conflicting results. This paper presents an accrual-based cash flow prediction model based on a random walk in cash flows adjusted for the reversal of current...

This study examines empirically the extent to which the frequency of interim financial reporting affects stock price volatility over the course of the fiscal year in four countries with different interim reporting regimes: the United States and Canada with quarterly reporting, and Great Britain...

Embedded value has been widely adopted by European and Canadian life insurance companies for supplementary performance reporting and increasingly by US insurers for management purposes. It has important implications for the international debate over the appropriate use of fair values in...

To make accounting information useful for investment decision, the FASB/IASB Conceptual Framework Project must carefully study such economic concepts as income, and take an established piece of empirical evidence seriously: cost of capital is not stable, let alone constant

It seems logical to assume that GAAP aimed at informing investors shows a higher association with share prices (value relevance) than GAAP aimed at protecting creditors. The majority of empirical studies support this assumption. This paper examines the value relevance of IFRS and German GAAP....

After an empirical start, brand valuation has attracted the interest of both accounting practitioners and academicians. Several methods for the assessment of brand value have been developed. However, a major critique shared by these models has been the lack of objectivity. In view of such...

The separation of leases into operating and finance leases for accounting purposes can result in incentives to favour operating lease contracts since they avoid on-balance sheet debt. The IASB is conducting an active research project on leasing, following the G4+1 group's research on possible...

Recent research in accounting has documented a dramatic increase in the number of firms reporting losses. This increase in losses calls into question the value relevance of earnings numbers. If a firm is likely to be abandoned, its book value will be more relevant than the magnitude of its loss...