Purpose The purpose of this study is to examine the association between two reporting mechanisms used by managers communicate risk information capital market: disclosure and earnings smoothing. Design/methodology/approach This juxtaposes competing hypotheses, “opportunistic” “signaling”, empirically investigates whether one dominates other for a sample large UK firms period 2005–2015. also uses...

this study presents empirical evidence concerning the effect of different accounting standard on earnings management. prior studies have shown that accounting standards influence earnings management. tighter accounting standards regime restricts management’s descretion to manipulate accruals, and at the same time, induce more costly real earnings management activities. to investigate this iss...

This paper studies the nature of earnings dynamics in Australia, using Household, Income and Labour Dynamics Australia (HILDA) Survey 2001–2020. Our results indicate that distribution shocks displays negative skewness excess kurtosis, deviating from conventional linearity normality assumptions. Wage changes are strongly associated with account more for dispersion shocks; meanwhile, contribution...

This paper posits a notion of the value of an individual’s human capital and the associated return on human capital. These concepts are examined using U.S. data on male earnings and financial asset returns. We find that (1) the value of human capital is far below the value implied by discounting earnings at the risk-free rate, (2) mean human capital returns exceed stock returns early in life an...

the valuation of companies is often complicated by a failure to understand how share prices are set. many senior executive believe that stock prices are set by some vague combination of earnings, growth rates, returns, book values, cash flows, dividends and trading volumes. in this article two general models of valuation are introduced. the firs t one is the accounting model which states that s...