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Changes in the value-relevance of earnings and book values over the past forty years
This paper investigates systematic changes in the value-relevance of earnings and book values over time. We report three primary findings. First, contrary to claims in the professional literature,Expand
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Errors in Estimating Accruals: Implications for Empirical Research
This paper examines the impact of measuring accruals as the change in successive balance sheet accounts, as opposed to measuring accruals directly from the statement of cash flows. Our primaryExpand
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An analysis of intertemporal and cross-sectional determinants of earnings response coefficients
Abstract Stock pride change associated with a given unexpected earnings change (the earnings response coefficient) exhibits cross-sectional and temporal variation. We predict and document evidenceExpand
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The Discovery and Reporting of Internal Control Deficiencies Prior to SOX-Mandated Audits
This paper uses firms' disclosures of internal control problems prior to audits mandated by Section 404 of the Sarbanes-Oxley Act (SOX) to investigate the economic factors that expose firms toExpand
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The Effects of Corporate Governance on Firms' Credit Ratings
We investigate whether firms with strong corporate governance benefit from higher credit ratings relative to firms with weaker governance. Expand
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The Effect of SOX Internal Control Deficiencies and Their Remediation on Accrual Quality
This paper investigates the effect of internal control deficiencies and their remediation on accrual quality. We first document that firms reporting internal control deficiencies have lower qualityExpand
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The Effect of SOX Internal Control Deficiencies on Firm Risk and Cost of Equity
ABSTRACT The Sarbanes-Oxley Act (SOX) mandates management evaluation and independent audits of internal control effectiveness. The mandate is costly to firms but may yield benefits through lowerExpand
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Equity Valuation and Negative Earnings: The Role of Book Value of Equity
This study provides an explanation for the anomalous significantly negative price‐earnings relation using the simple earnings capitalization model for firms that report losses. We hypothesize andExpand
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Lack of timeliness and noise as explanations for the low contemporaneuos return-earnings association
We assess earnings lack of timeliness and value- irrelevant noise in earnings as explanations for the weak contemporaneous return-earnings association. Earnings lack timeliness because objectivity,Expand
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