• Corpus ID: 17263690

Accounting Defects , Financial Statement Credibility , and Equity Valuation by

  title={Accounting Defects , Financial Statement Credibility , and Equity Valuation by},
  author={William Bruce Johnson},
We would like to acknowledge helpful discussions with Robert Bowen and David Burgstahler. Existing equity valuation models are silent on the question of how changes in financial statement credibility alter the usefulness of accounting data for valuation purposes. 1 Reported cash flow, earnings and balance sheet data are either taken at face or they are adjusted to eliminate alleged deficiencies unrelated to credibility concerns (e. contrast to the role credibility plays in principal-agent… 

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