The Effects Of Accounting Conservatism On Financial Statements And Financial Statement Users
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| Author | : Ralf Ewert |
| Publisher | : |
| Total Pages | : 142 |
| Release | : 2012 |
| Genre | : Business & Economics |
| ISBN | : |
Earnings Management, Conservatism, and Earnings Quality reviews and illustrates earnings management, conservatism, and their effects on earnings quality in an economic modeling framework. Both earnings management and conservative accounting introduce biases to financial reports. The fundamental issue addressed is what economic effects these biases have on earnings quality or financial reporting quality. Earnings Management, Conservatism, and Earnings Quality reviews analytical models of earnings management and conservatism and shows that both can have beneficial or detrimental economic effects, so a differentiated view is appropriate. Earnings management can provide additional information via the financial reporting communication channel, but it can also be used to misrepresent the firm's position. What the authors find is that similar to earnings management, conservatism can reduce the information content of financial reports if it suppresses relevant information, but it can be a desirable feature that improves economic efficiency. The approach to study earnings management, conservatism, and earnings quality is based on the information economics literature. A variety of analytical models are reviewed that capture the effects and subtle interactions of managers' incentives and rational expectations of users. The benefit of analytical models is to make precise these, often highly complex, strategic effects. They offer a rigorous explanation for the phenomena and show that sometimes conventional wisdom does not apply. The monograph is organized around a few basic model settings, which are presented in simple versions first and then in extensions to elicit the main insights most clearly. Chapter 2 presents the basic rational expectations equilibrium model with earnings management and rational inferences by the capital market. Chapter 3 is devoted to earnings quality and earnings quality metrics used in many studies. Chapter 4 studies conservatism in accounting. Finally, the authors examine the interaction between conservatism and earnings management. Each chapter ends with a section containing a summary of the main findings and conclusions.
| Author | : James Harris Bliss |
| Publisher | : |
| Total Pages | : 880 |
| Release | : 1924 |
| Genre | : Accounting |
| ISBN | : |
| Author | : Mitchell Franklin |
| Publisher | : |
| Total Pages | : 1056 |
| Release | : 2019-04-11 |
| Genre | : |
| ISBN | : 9781680922912 |
The text and images in this book are in grayscale. A hardback color version is available. Search for ISBN 9781680922929. Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields. Each chapter opens with a relatable real-life scenario for today's college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the "why" as well as the "how" aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization.
| Author | : Raymond E. Miles |
| Publisher | : Stanford University Press |
| Total Pages | : 305 |
| Release | : 2003-03-26 |
| Genre | : Business & Economics |
| ISBN | : 0804767173 |
"Books and articles come and go, endlessly. But a few do stick, and this book is such a one. Organizational Strategy, Structure, and Process broke fresh ground in the understanding of strategy at a time when thinking about strategy was still in its early days, and it has not been displaced since." —David J. Hickson, Emeritus Professor of International Management & Organization, University of Bradford School of Management Originally published in 1978, Organizational Strategy, Structure, and Process became an instant classic, as it bridged the formerly separate fields of strategic management and organizational behavior. In this Stanford Business Classics reissue, noted strategy scholar Donald Hambrick provides a new introduction that describes the book's contribution to the field of organization studies. Miles and Snow also contribute new introductory material to update the book's central concepts and themes. Organizational Strategy, Structure, and Process focuses on how organizations adapt to their environments. The book introduced a theoretical framework composed of a dynamic adaptive cycle and an empirically based strategy typology showing four different types of adaptation. This framework helped to define subsequent research by other scholars on important topics such as configurational analysis, organizational fit, strategic human resource management, and multi-firm network organizations.
| Author | : Mary E. Barth |
| Publisher | : Now Publishers Inc |
| Total Pages | : 109 |
| Release | : 2007 |
| Genre | : Business & Economics |
| ISBN | : 1601980086 |
Research, Standard Setting, and Global Financial Reporting aids researchers in conducting research relevant to global financial reporting issues, particularly those of interest to financial reporting standard setters. Research, Standard Setting, and Global Financial Reporting describes the relation between research and standard-setting issues; explains how a variety of research designs can be used to address questions motivated by standard-setting issues, including valuation research and event studies; offers examples of research addressing a specific global standard-setting issue - use of fair value in measuring accounting amounts; offers further opportunities for future research on specific standard-setting topics by providing motivating questions relating to the major topics on the agendas of the FASB and IASB; explains how the IASB aims to achieve its mission of developing a single set of high quality accounting standards that are accepted worldwide; summarizes extant evidence on the relative quality of accounting amounts across global standard-setting regimes and whether global financial reporting is achievable or even desirable. Research, Standard Setting, and Global Financial Reporting examines opportunities for future research on issues related to globalization of financial reporting by identifying motivating questions that are potentially avenues for future research.
| Author | : |
| Publisher | : |
| Total Pages | : 506 |
| Release | : 1926 |
| Genre | : Accounting |
| ISBN | : |
| Author | : William Dyson WOOD |
| Publisher | : |
| Total Pages | : 36 |
| Release | : 1872 |
| Genre | : |
| ISBN | : |
| Author | : Peter O. Christensen |
| Publisher | : Now Publishers Inc |
| Total Pages | : 127 |
| Release | : 2009 |
| Genre | : Business & Economics |
| ISBN | : 1601982720 |
We review and critically examine the standard approach to equity valuation using a constant risk-adjusted cost of capital, and we develop a new valuation approach discounting risk-adjusted fundamentals, such as expected free cash flows and residual operating income, using nominal zero-coupon interest rates. We show that standard estimates of the cost of capital, based on historical stock returns, are likely to be a significantly biased measure of the firm's cost of capital, but also that the bias is almost impossible to quantify empirically. The new approach recognizes that, in practice, interest rates, expected equity returns, and inflation rates are all stochastic. We explicitly characterize the risk-adjustments to the fundamentals in an equilibrium setting. We show how the term structure of risk-adjustments depends on both the time-series properties of the free cash flows and the accounting policy. Growth, persistence, and mean reversion of residual operating income created by competition in the product markets or by the accounting policy are key determinants of the term structure of risk-adjustments.
| Author | : Shahrokh M. Saudagaran |
| Publisher | : Thomson South-Western |
| Total Pages | : 262 |
| Release | : 2004 |
| Genre | : Business & Economics |
| ISBN | : |
As business and capital markets have continue to grow more global over recent years, the need for cross-border financial information has correspondingly increased. This has brought international accounting to the forefront. International Accounting: A User Perspective is designed to provide an understanding of international accounting issues to current and future business managers. The book takes a user perspective to international financial reporting because most business executives are more likely to be users of financial information that crosses national borders than users of it. With the recent problems exposed in the quality of financial reporting in many countries, a solid understanding of international accounting issues is an important part of the portfolio of skills that managers in medium and large enterprises must possess.
| Author | : Jennifer Francis |
| Publisher | : Now Publishers Inc |
| Total Pages | : 97 |
| Release | : 2008 |
| Genre | : Business & Economics |
| ISBN | : 1601981147 |
This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.
