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作者：Dechow, Patricia M.; Ge, Weili
作者单位：University of Michigan System; University of Michigan
摘要：We argue that high accruals are likely to be the outcome of rules with an income statement perspective, while low accruals are likely to be the outcome of rules with a balance sheet perspective, and that this has implications for the properties of earnings. Specifically, earnings persistence is affected both by the magnitude and sign of the accruals. Accruals improve the persistence of earnings relative to cash flows in high accrual firms, but reduce earnings persistence in low accrual firms. ...
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作者：Landsman, Wayne R.; Peasnell, Ken V.; Pope, Peter F.; Yeh, Shu
作者单位：University of North Carolina; University of North Carolina Chapel Hill; Lancaster University; National Taiwan University
摘要：We use a residual income valuation framework to compare equity valuation implications of four approaches to employee stock options (ESOs) accounting: APB 25 recognize nothing, SFAS 123 (revised) recognize ESO expense, FASB Exposure Draft recognize and expense ESO asset and recognize ESO asset and liability. Theoretical analysis shows only grant date recognition of an asset and liability, and subsequent marking-to-market of the liability, results in accounting numbers that capture the dilution ...
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作者：Koonce, Lisa
作者单位：University of Texas System; University of Texas Austin
摘要：My paper discusses Bloomfield, Nelson, and Smith's (BNS) model and experimental study of the price dynamics that arise when a firm's accounting reports are predictable from its stock returns. This phenomenon occurs when the firm takes a position in an asset that generates unrealized gains and losses (UGL's) that are correlated with the firm's own returns. My discussion of BNS focuses on three features that are often used to evaluate research-namely, potential for falsification, internal validi...
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作者：Baldenius, Tim
作者单位：Columbia University
摘要：The conference paper by Johnson (2006, Review of Accounting Studies, forthcoming) develops an incomplete-contracting transfer pricing model with a number of novel features: taxation, sequential investments, and intangible assets being transferred. This discussion aims to disentangle these features so as to highlight those that are the key drivers of the results. Moreover, I show that some of the results can be generalized to settings involving a greater level of technological interdependency b...
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作者：Lee, Chi-Wen Jevons; Li, Laura Yue; Yue, Heng
作者单位：Tulane University; Peking University
摘要：We study the relationship between the amount of managed earnings and firms' earnings performance and expected growth in a reporting model, where managers manipulate earnings to influence the valuation of firms' equity while bearing a cost that is increasing and convex in the amount of managed earnings. In the unique revealing equilibrium to the model, firms with higher performance and growth over-report earnings by a larger amount because price responsiveness increases with earnings performanc...
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作者：Bergstresser, Daniel
作者单位：Harvard University
摘要：Richardson's paper is a useful addition to the literature on the relationship between cash flow and investment. His approach to estimating this relationship is a new twist on earlier approaches. Like most of this literature, Richardson finds evidence that firms' investment decisions are excessively sensitive to current cash flow, suggesting that violations of the Modigliani-Miller assumptions are empirically important. My view is that conceptual and implementation problems beset Richardson's a...
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作者：Johnson, Nicole Bastian
作者单位：University of California System; University of California Berkeley
摘要：This paper examines the effectiveness of three transfer pricing methodologies for an intangible asset that is developed through bilateral, sequential investment. In general, a royalty-based transfer price that can be renegotiated provides better investment incentives than either a non-negotiable royalty-based transfer price or a purely negotiated transfer price, and in some cases induces first-best investment. This result contrasts with previous research that finds that the inability to limit ...
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作者：Richardson, Scott
作者单位：University of Pennsylvania
摘要：This paper examines the extent of firm level over-investment of free cash flow. Using an accounting-based framework to measure over-investment and free cash flow, I find evidence that, consistent with agency cost explanations, over-investment is concentrated in firms with the highest levels of free cash flow. Further tests examine whether firms' governance structures are associated with over-investment of free cash flow. The evidence suggests that certain governance structures, such as the pre...
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作者：Bloomfield, Robert J.; Nelson, Mark W.; Smith, Steven D.
作者单位：Cornell University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：This paper presents and tests a model of the price dynamics that arise when investors fail to recognize the redundancy of unrealized gains and losses (UGLs) that are correlated with the firm's past returns. Consistent with the predictions of our model, our experiment shows that a firm's prices and earnings become highly volatile when correlated investment is large and correlated UGLs are made salient by comprehensive income reporting. The results suggest that including correlated UGLs in perfo...
