The relevance of the value-relevance literature for financial accounting standard setting

• 成果类型: Article; Proceedings Paper
• 署名作者: Holthausen, RW; Watts, RL
• 署名单位: University of Rochester; University of Pennsylvania
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(01)00029-5
• 发表日期: 2001
• 关键词: fair value disclosures; market valuation; investment securities; information-content; asset revaluations; firm performance; COMMERCIAL-BANKS; stock returns; BONUS SCHEMES; UNITED-STATES

摘要

In this paper we critically evaluate the standard-setting inferences that can be drawn from value relevance research studies that are motivated by standard setting. Our evaluation concentrates on the theories of accounting, standard setting and valuation that underlie those inferences. Unless those underlying theories are descriptive of accounting, standard setting and valuation, the value-relevance literature's reported associations between accounting numbers and common equity valuations have limited implications or inferences for standard setting, they are mere associations. We argue that the underlying theories are not descriptive and hence drawing standard-setting inferences is difficult. (C) 2001 Elsevier Science B.V. All rights reserved.