The value relevance of revenue for Internet firms: Does reporting grossed-up or Barter revenue make a difference?

• 成果类型: Article
• 署名作者: Davis, AK
• 署名单位: Washington University (WUSTL)
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.00056
• 发表日期: 2002
• 页码: 445-477
• 关键词: earnings

摘要

This study provides evidence on (a) the market's response to revenue and revenue announcements, (b) the extent of the use of grossed-up and barter revenue by Internet firms, and (c) whether the value relevance of revenue differs when Internet firms report grossed-up or barter revenue. Results indicate that revenue announcements are highly associated with three-day market returns and provide information incremental to that contained in earnings announcements. The rise of grossed-up and barter revenue is common for certain sectors of Internet firms, but not pervasive across sectors. Evidence suggests that the value relevance of revenue for firms reporting grossed-up and barter revenue declined subsequent to the crash in April 2000. Additional analyses explore the effect of actin e individual investors on the pricing of revenue for firms reporting grossed-up and barter revenue. Findings suggest higher pricing of revenue for firms reporting grossed-up or barter revenue with relatively greater individual investor following.