Managerial ownership, accounting choices, and informativeness of earnings
Article Abstract:
A study was conducted on the effect of the level of managerial ownership in a corporation on the stock price informativeness of accounting earnings and the accounting choice of managers. A test sample of around 1,600 corporations and almost 5,000 annual accounting reports from the period 1988-1990 was used. Results showed a positive association between managerial ownership and the explanatory power of earnings for returns and an inverse relation between managerial ownership and the extent of accounting accrual adjustments.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1995
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Stock price informativeness of accounting numbers: evidence on earnings, book values and their components
Article Abstract:
A study was done to evaluate the usefulness of information from firms' summary reports. Since there is a trend to reduce details in such reports, it is argued that these reports will not benefit the companies' shareholders. The study examines earnings and book values for validity of the information they convey. Results indicate that financial reporting disclosures must not be reduced despite variation of company information across industries and firm size.
Publication Name: Journal of Accounting and Public Policy
Subject: Business
ISSN: 0278-4254
Year: 1992
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Do nonlinearity, firm-specific coefficients, and losses represent distinct factors in the relation between stock returns and accounting earnings?
Article Abstract:
A study was conducted to test the theory that the relation between stock returns and accounting earnings is nonlinear, differs for profits and losses and varies across firms. It was found that each of the three factors explains a significant portion of the variance of stock returns when the other two factors are controlled. Results also suggested that the return response to earnings is not determined only by the size and sing of earnings.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1998
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