Showing papers in "Journal of Accounting and Economics in 2000"

TL;DR: In this paper, the authors characterize the ''shareholder'' and ''stakeholder'' corporate governance models of common and code law countries respectively as resolving information asymmetry by public disclosure and private communication.

TL;DR: In the absence of a generally accepted definition of conservatism, a number of measures of reporting conservatism are identified and examined in this paper, which rely on the accumulation of nonoperating accruals, the timeliness of earnings with respect to bad and good news, characteristics of the earnings distribution and the market-to-book ratio.

TL;DR: This article found no evidence that economic dependence causes Big Five auditors to report more favorably for larger clients in their offices, and they do find that Big 5 auditors report more conservatively for large clients, suggesting that reputation protection dominates auditor behavior.

TL;DR: The authors investigated whether CEOs manage the timing of their voluntary disclosures around stock option awards and found that CEOs make opportunistic voluntary disclosure decisions that maximize their stock option compensation, and provided more direct evidence based on management earnings forecasts issued prior to award dates.

TL;DR: In this article, the authors evaluated the ability of the cross-sectional Jones Model and the Cross-sectional Modified Jones Model to detect earnings management vis-a-vis their time-series counterparts by examining the association between discretionary accruals and audit qualifications.

TL;DR: The authors found that the use of accrual accounting (versus cash accounting) negatively affects the value relevance of financial statements in countries with weak or no shareholder protection, while this negative effect does not exist in countries that have strong or no shareholders protection.

TL;DR: In this article, the authors examine two hypotheses of auditor resignation: litigation risk and clientele adjustment, and find resignation is positively related to increased client legal exposure, and to occurrence of clientele mismatch.

TL;DR: In this paper, the authors examine earnings management around seasoned equity offerings and, consistent with Rangan (J. Financial Econ. 50 (1998) 101) and Teoh et al., find evidence of earnings management.

TL;DR: The authors show that companies choose external performance standards when prior performance is a noisy estimate of contemporaneous performance, and that companies using budget based and other internally determined performance standards have less-variable bonus payouts, and are more likely to smooth earnings, than companies using externally determined standards.

TL;DR: This article showed that companies would have received unfavourable reports more often under different switch decisions, indicating that companies do successfully engage in opinion-shopping and that they do not successfully switch auditors.

TL;DR: This article investigated whether the accrual pricing anomaly documented by Sloan (1996) for annual data holds for quarterly data and whether this form of market mispricing is distinct from the post-earnings announcement drift anomaly.

TL;DR: In this paper, the authors examined how conservative accounting affects the relation between accounting data and firm value and showed that conservative accounting can be characterized equivalently in terms of book value, earnings, or book rate of return.

TL;DR: This paper investigated the reliability of mandatory annual fair value estimates for UK investment property and found that appraisal estimates understate actual selling prices and are considerably less biased and more accurate measures of selling price than respective historical costs.

TL;DR: In this paper, the authors find that brokerage volume is significantly higher in covered stocks than in uncovered stocks, and on average, brokers increase their market share in the covered stocks by 3.8% relative to uncovered stocks.

TL;DR: In this article, the authors investigate how cross-country differences in financial accounting standards affect the relation between financial accounting earnings and real economic value-relevant events that underlie those earnings.

TL;DR: This article investigated the determinants of discretionary SFAS 106 choices of non-regulated firms and found that more unionized firms are more likely to use immediate recognition, consistent with incentives to reduce labor renegotiation costs.

TL;DR: In this paper, the authors analyzed individual performance data for 3,776 sales employees of a retail firm to evaluate alternative sources of continuing performance improvement and found that more productive employees self-select into the firm and allocate effort to become more effective.

TL;DR: In this article, the determinants of the number of analysts following a firm using econometric models based on count distributions were examined and shown to be inversely related with analyst following.

TL;DR: In this article, the role of going-concern audit opinions in IPOs was investigated and it was shown that the presence of a GC opinion is positively related to whether a stock delists within two years of IPO.

TL;DR: The authors investigate firms' choices between the purchase and pooling methods in stock-for-stock acquisitions and find that CEOs with earnings-based compensation are more likely to choose pooling and avoid the earnings penalty associated with purchases.

TL;DR: In this article, the authors investigate write-down of assets of oil and gas firms due to the application of the SEC full-cost ceiling test during the period of the largest decline in oil prices since this test was mandated.

TL;DR: In this article, the effect of tax-based transaction structure on the acquisition price of corporate subsidiaries was analyzed for a sample of 200 subsidiary stock acquisitions, and the evidence weakly supported the conclusion that acquisition premiums are higher in transactions accompanied by an I.R.C. §338(h)(10) election.

TL;DR: The authors investigated the effect of tax accounting provisions for long-term manufacturing contracts between 1984-1985 and 1989-1990 on debt and accrual policies using a simultaneous equations approach, and found that firms adjust debt ratios and discretionary accruals with relatively high book-tax conformity to achieve tax planning goals and use discretionary accumulation with relatively low book tax conformity to accomplish financial reporting objectives.

TL;DR: This paper examined individual investors' short and long-term trading reactions to the 1986 Tax Reform Act's (TRA 86) capital gain tax rate increase and found that individual investors were less willing to sell accrued gain (loss) stocks after TRA 86.

TL;DR: In this paper, the authors examine banks' choice of accounting methods in a new regulatory environment that more closely ties regulatory monitoring to GAAP numbers and find that the choice of the implementation method for SFAS 106 is consistent with an attempt to balance the increased regulatory costs with earnings management benefits.

TL;DR: This paper examined the effect of deregulation in the electric utility industry on the relation between market value, book value, and earnings and found that deregulation decreases the relative importance of book value (earnings) in explaining price.

TL;DR: In this article, the authors find a more negative decommissioning cost/firm value association for utilities with higher business or financial risk, while equity value is significantly associated with total decommissioned cost across all nuclear units in which a utility has ownership interest.

TL;DR: The authors examined the properties of reverse regression procedures in multi-interacted variable settings with a specific focus on the earnings response coefficient (ERC) analysis of Collins and Kothari (J. Account. 11 (1989) 143.).

TL;DR: In this article, a positive relation between self-insurance and state taxes is detected, consistent with consumers opting to selfinsure rather than bear the incidence of higher insurer taxes.