Capital Market Equilibrium, Information Production, and Selecting Accounting Techniques: Theoretical Framework and Review of Empirical Work

Gonedes, Nicholas J.; Dopuch, Nicholas

doi:10.2307/2490499

Cited by 237 publications

(103 citation statements)

References 97 publications

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“…This research includes Gonedes and Dopuch (1974), Jensen and Meckling (1976), Myers (1977), Watts (1977Watts ( , 2003aWatts ( and b, and 2006, Watts and Zimmerman (1978, 1986), Smith and Warner (1979), Beaver (1981, 1989), Basu (1997, Ball, Kothari, and Robin (2000), Ball (2001 and, Healy and Palepu (2001), Shleifer (2005), among many others, although some of the ideas have origins that reach further back into the past. For ideas that appear in multiple places over a long period of time, we attempt to attribute the ideas to original contributors, but often also reference subsequent contributors/extensions to facilitate understanding of the evolution of the literature.…”

Section: An Economic Theory Of Gaap: Expected Propertiesmentioning

confidence: 99%

“…Thus, overproduction due to externalities is unlikely to be a justification for regulating accounting. Accounting standards can, however, be considered nonexcludable (see for example, Gonedes and Dopuch, 1974;Leftwich, 1980;Watts and Zimmerman, 1986;Sunder, 1988 The information asymmetry justification for regulation is perhaps best understood through Akelof's (1970) description of adverse selection. Information asymmetry between buyers and sellers on the quality of a product prompts the buyers to demand a discount from sellers.…”

Section: Public Interest Theory Of Regulationmentioning

confidence: 99%

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Implications for GAAP from an analysis of positive research in accounting

Kothari¹,

Ramanna

Skinner

2010

Journal of Accounting and Economics

582

356

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Based on extant literature, we review the positive theory of GAAP. The theory predicts that GAAP's principal focus is on control (performance measurement and stewardship) and that verifiability and conservatism are critical features of a GAAP shaped by market forces. We recognize the advantage of using fair values in circumstances where these are based on observable prices in liquid secondary markets, but caution against expanding fair values to financial reporting more generally. We conclude that rather than converging U.S. GAAP with IFRS, competition between the FASB and the IASB would allow GAAP to better respond to market forces.

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Section: An Economic Theory Of Gaap: Expected Propertiesmentioning

confidence: 99%

Section: Public Interest Theory Of Regulationmentioning

confidence: 99%

Implications for GAAP from an analysis of positive research in accounting

Kothari¹,

Ramanna

Skinner

2010

Journal of Accounting and Economics

582

356

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show abstract

“…Kothari and Zimmerman (1995) reviewed some studies that illustrate the price and return models' advantages and disadvantages. Theoretically, in the absence of well developed valuation theories, return model is superior to price model (Gonedes and Dopuch, 1974). While both models have been described as complementary (Lev and Ohlson, 1982), in some cases price model dominates return model (Landsman and Magliolo, 1988).…”

Section: Price and Return Modelsmentioning

confidence: 99%

Value Relevance of Earnings and Book Value: Evidence from Jordan

Shamki¹,

Rahman²

2012

IJBM

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This paper examines the value relevance of earnings and book value of equity (individually and in aggregate), relative to price and return models, for Jordanian industrial companies for the period 1992 to 2002. The main findings of this paper are twofold. First, relative to price model, the value relevance of both earnings and book value (individually) have increased, whilst the value relevance of earnings increased and book value became irrelevant in their combination. Secondly, relative to return model, the value relevance of earnings either individually or in aggregate has increased while that of book value has declined. Overall, it is found that earnings are more important in explaining the variance in share price and return than book value. Furthermore, the results indicate that earnings and book value individually are more value relevant in price model. In contrast, these variables in aggregate are more value relevant in return model. The study shows that earnings help more in explaining market values in Jordanian industrial companies. This paper is the first in using price and return models in one study in Jordan.

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“…Zbývá poslední argument teorie veřejného zájmu pro osvětlení regulace tvorby účetních standardů, a to potenciální přítomnost pozitivních externalit. Účetní standardy jsou statkem, u kterého může být velmi obtížné vyloučit neplatící uživatele-firmy ze spotřeby (Gonedes -Dopuch, 1974). Při neregulovaném trhu by v takové situaci tržní cena nepostačovala k pokrytí nákladů na produkci společensky optimálního objemu účetních standardů.…”

Section: Regulace Ekonomické čInnosti a Její Aplikace Na Tvorbu účEtnunclassified

“…dobývání renty (Krueger, 1974). Za úspěšnými snahami zavést regulaci tvorby účetních standardů stojí skutečnost, že změny v účetních předpisech mohou nezanedbatelným způsobem změnit rozdělení ekonomických zdrojů mezi jednotlivé členy společnosti (Gonedes -Dopuch, 1974;Barth, 2006). Zajímavá specifika aplikace teorií regulace se objevují právě u tvůrců světově akceptovaných účetních standardů (tj.…”

Section: Regulace Ekonomické čInnosti a Její Aplikace Na Tvorbu účEtnunclassified

Is a Full International Accounting Convergence Desirable?

Procházka¹

2015

ČFÚČ

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ÚvodNa společném zasedání 18. září 2002 uzavřely IASB a FASB, dvě nejvýznamnější světové instituce vydávající účetní standardy, dohodu, ve které se zavázaly podniknout kroky k dosažení kompatibility obou systémů. Dohoda reálně znamenala, že dvě samostatné a rozdílné sady účetních standardů splynou věcně v jeden systém účetního výkaznictví (byť s formálním zachováním IFRS i US GAAP

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Capital Market Equilibrium, Information Production, and Selecting Accounting Techniques: Theoretical Framework and Review of Empirical Work

Cited by 237 publications

References 97 publications

Implications for GAAP from an analysis of positive research in accounting

Implications for GAAP from an analysis of positive research in accounting

Value Relevance of Earnings and Book Value: Evidence from Jordan

Is a Full International Accounting Convergence Desirable?

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