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作者：Balachandran, Sudhakar; Mohanram, Partha
作者单位：Columbia University
摘要：We use residual income ( RI) to decompose earnings growth into growth in RI, growth in invested capital and other components and use this decomposition to explain stock returns. Our approach provides a significant increase in explanatory power vis-a-vis a regression of returns on levels and changes in earnings. While the market values growth in RI more than growth in invested capital, it still undervalues growth in RI and overvalues growth in invested capital. Earnings growth from growth in RI...
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作者：Cecchini, Mark; Jackson, Scott B.; Liu, Xiaotao
作者单位：University of South Carolina System; University of South Carolina Columbia; Northeastern University
摘要：We examine whether initial public offering (IPO) firms exercise discretion over an individual accrual account on the balance sheet-the allowance for uncollectible accounts-and an individual accrual account on the income statement-bad debt expense. Our research design exploits a unique disclosure requirement related to these accounts (i.e., the ex post disclosure of write-offs of uncollectible accounts), which enables us to develop refined expectation models. We provide evidence that IPO firms ...
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作者：Peterson, Kyle
作者单位：University of Oregon
摘要：I examine whether accounting complexity in the area of revenue recognition increases the probability of restating reported revenue. I measure revenue recognition complexity using the number of words and recognition methods from the revenue recognition disclosure in the 10-K and a factor score based on the number of words and methods. Tests reveal that revenue recognition complexity increases the probability of revenue restatements, and these restatements are the result of both intentional and ...
