A commonly cited motivation for off-balance sheet financing is a reduction in reported book (balance sheet) leverage. Operating leases, the most common form of off-balance sheet financing, are required to be disclosed in financial statement footnotes, but limited disclosure complicates external...

In addition to other contributions to the literature, this note shows how value created can be measured if firms are financed not only by equity, but also by debt. We deal with this capital structure using the weighted average cost of capital (WACC) approach. We show that measuring value...

This paper develops a taxonomy of research examining the role of financial analysts in capital markets. The paper builds on the perspectives provided by Schipper [Schipper, K. (1991). Analysts' forecasts. Accounting Horizons, 5, 105-131] and Brown [Brown, L. (1993). Earnings forecasting...

In Korea, there is a general tendency for controlling shareholders to transfer the ownership of their companies to the next generation. In this paper, we investigate whether Korean controlling shareholders attempt to influence stock prices when they transfer stock to related parties as gifts....

In this study, we investigate the implication of potential environmental liabilities for the reliability (noisiness) of accounting information as it manifests itself in the magnitude of ERC. Multiple regression analyses of abnormal stock returns on earnings surprise and other control variables...

This paper examines the association between block ownership and market liquidity. Blockholders are believed to have access to private, value relevant information via their role as monitors of firms' operations. Consistent with this, we find that firms with greater blockholder ownership, either...

This paper examines the relationship between accounting discretion and investment opportunity sets (IOSs) of regulated banks in the presence of accounting-based regulatory contracts. Specifically, the proposition that accounting discretion allows a bank to avoid constraints on its IOS resulting...

Most agree that value-relevance and timeliness are two important and desirable attributes of financial information. In this study, we examine the value-relevance and timeliness of financial information under different information regimes: distinct trading mechanisms and different levels of...

This paper compares estimates of value derived from conventional discounted cash flow and price earnings valuation methods to the market price. For a sample of 45 firms newly listed on the New Zealand Stock Exchange our results suggest that the best discounted cash flow method and the best price...

Numerous studies, both empirical and analytical, identify causes and provide possible interpretations of cross-sectional variation in trading responses to information releases such as earnings announcements. We extend this line of inquiry within the empirical domain by partitioning volume into...