Showing papers in "Journal of Accounting and Economics in 1991"

TL;DR: In this paper, the authors investigated the hypothesis that CEOs in their final years of office manage discretionary investment expenditures to improve short-term earnings performance and found no evidence that the reduced R&D expenditures are associated with either poor firm performance or reductions in investment expenditures that are capitalized for accounting purposes.

TL;DR: In this paper, the authors examined whether analysts' earnings forecasts incorporate information in price changes and found that there should be a positive association between analysts' forecast revisions and prior price changes, even if the forecasts do not explicitly depend upon price changes.

TL;DR: In this paper, the authors propose a model in which audited reports are valuable to entrepreneurs who have private information and seek to share risks with investors, where the choice of auditor and the resulting audited report provide partial information about the entrepreneur's private information, and he resolves all remaining investor uncertainty by signalling with retained ownership.

TL;DR: In this paper, a firm's decision to replace its auditor when the replacement affects outsiders' perceptions of its financial condition and auditors' attestations is studied, and it is shown that the auditor is more likely to be replaced the more favorable the firm's information and less favorable the auditor's information.

TL;DR: In this article, the authors report empirical tests of an hypothesized positive relation between audit quality and firm-specific risk that is predicted by Datar, Feltham, and Hughes' (1991) theoretical analysis of auditor choice when firms go public.

TL;DR: In this paper, an empirical examination of the nature of information conveyed by open-market stock repurchase announcements was conducted, and the findings weakly indicate that: (1) there are positive unexpected annual earnings in the repurchase announcement year and positive revisions of earnings forecasts by analysts around announcement dates.

TL;DR: In this article, the authors examined the effect of stock repurchase tender offers on future earnings and market risk levels and found that stock price reactions are positively correlated with earnings surprises over concurrent and subsequent two years, and negatively correlated with changes in equity market risk.

TL;DR: In this article, the authors provide evidence that repurchase tender offer announcements convey favorable information about the level and riskiness of future earnings, and they show that analysts revise their forecasts of earnings per share upward following repurchase announcements.

TL;DR: This paper showed that the simulation-based rejection percentages for detecting abnormal log-transformed volume reported in Ajinkya and Jain [AJ] are sensitive to the method of inducing abnormal volume.

TL;DR: This paper examined the competitiveness of the financial markets with respect to taxes and found that the market shifts most of the tax benefits to borrowers, indicative of an elastic supply curve for lenders, and evidence is also presented that ESOP lenders are high taxpaying banks, suggesting the existence of a tax clientele.

TL;DR: The authors examined the impact on equity prices of nine pronouncements related to the proposed accounting for non-pension postretirement benefits and found that firms with few retirees relative to current employees exhibit significant negative abnormal returns around the issuance of the Exposure Draft.

TL;DR: In this paper, the authors examine financial characteristics of settlement firms, including earnings, debt covenants, management incentive compensation, and firms' risk and financial structures, and suggest that firms undertake settlement to offset a decline in earnings and mitigate restrictive debt covenant constraints.

TL;DR: In this paper, the authors examine the decisions to both adopt and retain the use of several RAP: two cosmetic RAP that are relatively independent of other economic decisions and two non-cosmetic RAP which directly interact with investment or financing decisions and conclude that S&Ls using RAP tend to be mutuals, have low regulatory net worth, and have used other RAP in the prior period.

TL;DR: In this paper, the market reaction to three regulatory accounting principles issued by the Federal Home Loan Bank Board (FHLB) affected the market value of savings and loan associations (S&Ls).