Analytics in empirical/archival financial accounting research

In this article, we describe proven and exciting new analytics for testing hypotheses using empirical/ archival financial accounting data. Our study seeks to (1) inform business professionals about state-of-the-art methods and evidence from accounting research and (2) trigger academics to pursue new creative cross-disciplinary research in business, economics, law, and related social science fields. We organize the discussion around various research questions that are focal points of accounting research and the analytics used to test hypotheses. Financial accounting research is ultimately about how the measurement and communication of financial information affects capital allocation decisions. Major questions of interest include: How do different accounting measures affect the pricing of financial capital by investors and creditors? What information do investors and creditors obtain from accounting variables, such as earnings? What are the economic consequences of the release of accounting information in the capital markets? Modern empirical accounting research is indebted to advances in analytics that began in the 1960s, Business Horizons (2014) 57, 583—593