The empirical research examining the association between typical measures of corporate governance and various accounting economic outcomes has not produced a consistent set results. We believe that these mixed results are partially attributable to difficulty in generating reliable valid for complex construct is termed “corporate governance.” Using sample 2,106 firms 39 structural (e.g., board characteristics, stock ownership, institutional activist existence debtholders, mix executive...

ABSTRACT This paper uses pre‐offer market valuations to evaluate the misvaluation and Q theories of takeovers. Bidder target (price‐to‐book, or price‐to‐residual‐income‐model‐value) are related means payment, mode acquisition, premia, hostility, offer success, bidder announcement‐period returns. The evidence is broadly consistent with both hypotheses. for hypothesis stronger in pre‐1990 period than 1990–2000 period, whereas period.

Abstract It has been alleged that firms and analysts engage in an "earnings‐guidance game" where first issue optimistic earnings forecasts then "walk down" their estimates to a level can beat at the official announcement. We examine whether walk‐down beatable targets is associated with managerial incentives sell stock after announcements on firm's behalf (through new equity issuance) or from personal accounts option exercises sales). Consistent these hypotheses, we find most pronounced when...

We examine the relation between fees paid to auditors for audit and non‐audit services, choice of accrual measures a large sample firms. Using our pooled sample, we find that ratio total has positive with absolute value accruals similar Frankel, Johnson, Nelson [2002]. However, using latent class mixture models identify clusters firms homogenous regression structure reveals this association only occurs about 8.5% sample. In contrast fee results, consistent evidence negative level (both...

Existing research indicates that firms with high accruals are more likely to experience future earnings problems, but investors' expectations, as reflected in stock prices, do not appear anticipate these problems. In this paper, we directly examine the published opinions of two types professional investor intermediaries see if they provide investors information concerning problems experienced by accruals. First, forecasts sell‐side analysts. We show analysts' incorporate predictable declines...

This paper examines the usefulness of accounting information in predicting earnings management. We investigate a comprehensive sample firms from 1971-2000 that restated annual earnings. find restating have high market expectations for future growth and higher levels outstanding debt. also primary motivation manipulation is desire to attract external financing at lower cost. Furthermore, our evidence suggests been attempting maintain string consecutive positive quarterly surprises. Together,...

ABSTRACT Prior research shows that the cash component of earnings is more persistent than accrual component. We decompose into: (1) change in balance, (2) issuances/distributions to debt, and (3) equity. find higher persistence entirely due subcomponent related The other subcomponents have levels almost identical accruals. investigate whether investors understand implications differential three subcomponents. Our results suggest correctly price debt equity but misprice balance a similar...

We examine the relation between a broad set of corporate governance indicators and various measures managerial decision making organizational performance. Using sample 2,106 firms, we distill 39 structural (e.g., board characteristics, stock ownership, institutional activist existence debt-holders, mix executive compensation, anti-takeover variables) into 14 constructs using principal components analysis. find that these are related to operating performance, have somewhat mixed association...

ABSTRACT The purpose of this study is to examine the attitudes and perceptions current undergraduate tourism hospitality students in Australia toward careers industry. exploratory based on a quantitative approach. Areas that have concerns over include respondent's relationship with their managers, promotion opportunities, career paths, pay conditions offered within Possibly most alarming finding come out more than 50% respondents are already contemplating outside Of those work experience...

SYNOPSIS: A key measure of earnings quality is the deviation net income from operating cash flows. Sloan (1996) finds that firms with high accruals (or a large gap between and flow) experience decline in performance not anticipated by investors, resulting predictable future returns. In this paper, I examine whether investors short sell securities accruals. Such strategy able to directly profit lower Using sample U.S. traded 1990-1 998, do find evidence sellers trade on basis information...

The purpose of this study is to examine the attitudes and perceptions current undergraduate tourism hospitality students in Australia towards careers industry. exploratory based on a quantitative approach. Areas that have concerns over include respondent's relationship with their managers, promotion opportunities, career paths, pay conditions offer within Possibly most alarming finding come out more than 50% respondents are already contemplating outside Of those work experience industry,...

Abstract This study explored Malaysian undergraduate tourism and hospitality students' views of the industry as a career choice. Four hundred twenty-nine students, from three institutions completed questionnaire rating importance 20 factors in influencing their choice career, then extent to which they believed offers these factors. All tested have been identified being significantly different. From results, it is clear that students generally do not believe will offer them find important....

We extend the analysis in Sloan (1996) to identify source of information accruals about earnings quality. Our results indicate that quality is not limited current analyzed by Sloan, but extends non-current accruals. also show while originates almost exclusively from asset accruals, liability play a useful role helping isolate Finally, we both growth scale operations and deterioration efficiency usage. Overall, our total defined as difference between free cash flows, provide an intuitive,...

This paper examines whether links between inside and outside directors have an impact on CEO compensation. Using a comprehensive sample of 22,074 for 3,114 firms, we develop measure the "back door" distance each pair company's board. Specifically, using entire network compute minimum number other company boards that are required to establish connection (ignoring obvious link occurs when same board). The back door provides existence strength communication channel board members can be used...