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The Accounting Review 1–27.
Published: 27 September 2023
...Charles G. McClure; Anastasia A. Zakolyukina ABSTRACT The wide-spread reporting of non-GAAP earnings suggests efficiency gains from doing so. By estimating a dynamic investment model, we examine the real implications of investors using both GAAP and non-GAAP earnings to value firms. When investors...
The Accounting Review (2023) 98 (5): 187–214.
Published: 01 September 2023
...Shannon Chen; Lisa De Simone; Michelle Hanlon; Rebecca Lester ABSTRACT We study whether innovation box tax incentives, which reduce tax rates on innovation-related income, are associated with increased fixed asset investment and employment. Using a stacked cohort difference-in-differences design...
The Accounting Review (2023) 98 (3): 109–133.
Published: 01 May 2023
...Ciao-Wei Chen; Maria Correia; Oktay Urcan ABSTRACT We examine the real effects of lease-capitalization rules (i.e., standards that require firms to capitalize finance leases) on corporate investment. We show that the introduction of these rules leads to a decrease in investment, which is more...
The Accounting Review (2023) 98 (1): 337–363.
Published: 01 January 2023
...Tae Wook Kim; Jing Li; Suil Pae ABSTRACT A firm manager is concerned about both the firm value and the market assessments of his abilities. When investing in a project, he has private knowledge of his project-related ability that interacts with the project investment, and his general ability...
The Accounting Review (2022) 97 (6): 233–261.
Published: 01 October 2022
...Zackery D. Fox; Martin Jacob; Jaron H. Wilde; Ryan J. Wilson ABSTRACT Amid growing globalization, many countries have offered tax incentives to attract corporate investment. Prior research studies the role such incentives play in firms' location and investment choices. However, we have limited...
The Accounting Review (2022) 97 (5): 89–117.
Published: 01 September 2022
... consumption investment firm profitability In this paper, I evaluate how uncertainty about future macroeconomic developments affects consumers' and managers' decision-making and how their resulting actions affect firm profitability. My analysis is motivated by three factors. First, an understanding...
The Accounting Review (2021) 96 (4): 1–25.
Published: 01 July 2021
...Harald J. Amberger; Kevin S. Markle; David M. P. Samuel ABSTRACT Using a global sample of multinational corporations (MNCs) and their foreign subsidiaries, we find that repatriation taxes impair subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central...
The Accounting Review (2021) 96 (2): 435–463.
Published: 01 March 2021
...Shane R. Stinson; Marcus M. Doxey; Timothy J. Rupert ABSTRACT In an online experiment, the immediate (Roth) versus deferred taxation of retirement income affects taxpayers' investment decisions such that tax-deferred plan investors under-adjust for future tax burdens and overestimate their future...
The Accounting Review (2020) 95 (5): 399–433.
Published: 01 September 2020
...Nemit Shroff ABSTRACT This paper examines the effect of the Public Company Accounting Oversight Board (PCAOB) international inspection program on companies' financing and investing decisions. Difference-in-differences regression estimates suggest that companies respond to their auditor receiving...
The Accounting Review (2019) 94 (6): 31–60.
Published: 01 November 2019
...Brad A. Badertscher; Devin M. Shanthikumar; Siew Hong Teoh ABSTRACT We study how public firm misvaluation affects private peer firm investments. An economic competition hypothesis predicts a negative relation because misvaluation-induced new investment by public firms crowds out...
The Accounting Review (2018) 93 (2): 249–275.
Published: 01 March 2018
...Arthur G. Kraft; Rahul Vashishtha; Mohan Venkatachalam ABSTRACT Using the transition of U.S. firms from annual reporting to semi-annual reporting and then to quarterly reporting over the period 1950–1970, we provide evidence on the effects of increased reporting frequency on firms' investment...
Includes: Supplementary data
The Accounting Review (2018) 93 (1): 131–159.
Published: 01 January 2018
...' investment. In contrast, I do not find an average increase in investment among the firms benefiting from MAP-21. Rather, I find that firms either hold pension funding relief on their balance sheets as liquid assets or pay out pension funding relief to shareholders. To the extent that managers increase...
Includes: Supplementary data
The Accounting Review (2016) 91 (3): 741–766.
Published: 01 May 2016
...Tim Baldenius; Alexander A. Nezlobin; Igor Vaysman ABSTRACT In a dynamic setting with demand following a random process, we ask how investment and operating decisions can be delegated to a manager with unknown time preferences. Only the manager observes the demand realization in each period...
The Accounting Review (2015) 90 (3): 1079–1113.
Published: 01 May 2015
...Alvis K. Lo ABSTRACT This study examines the relationship between accounting credibility and firms' ability to fund their investments. Theory suggests that credible reporting resulting from external audits enables firms to attract external funds needed for their investments. The tests exploit...
The Accounting Review (2015) 90 (2): 739–759.
Published: 01 March 2015
...Kristina Rennekamp; Kathy K. Rupar; Nicholas Seybert ABSTRACT This paper examines how the reversibility of the accounting effect of asset impairments affects managers' investment decisions. We conduct two experiments in which participants act as CEO of a multi-division electronics company...
The Accounting Review (2014) 89 (5): 1609–1644.
Published: 01 September 2014
...Robert M. Bowen; Shivaram Rajgopal; Mohan Venkatachalam ABSTRACT We examine (1) whether the accounting, governance, and investing practices of Berkshire Hathaway investees are consistent with Warren Buffett's public statements on what constitutes good accounting, governance, and investing...
The Accounting Review (2014) 89 (2): 759–790.
Published: 01 March 2014
...Nemit Shroff; Rodrigo S. Verdi; Gwen Yu ABSTRACT This paper examines how the external information environment in which foreign subsidiaries operate affects the investment decisions of multinational corporations (MNCs). We hypothesize and find that the investment decisions of foreign subsidiaries...
Includes: Supplementary data
The Accounting Review (2014) 89 (1): 331–365.
Published: 01 January 2014
...Theodore H. Goodman; Monica Neamtiu; Nemit Shroff; Hal D. White ABSTRACT Corporate investment decisions require managers to forecast expected future cash flows from potential investments. Although these forecasts are a critical component of successful investing, they are not directly observable...
The Accounting Review (2013) 88 (6): 2117–2143.
Published: 01 November 2013
... accruals to credibly signal positive prospects, enabling it to raise capital to make the investments. We examine a large panel of firms during 1987 to 2009 and find that financially constrained firms with good investment opportunities have significantly higher discretionary accruals prior to investment...