The information content of losses

Article Abstract:

It is hypothesized that shareholders consider losses as temporary because they always have the option to liquidate the company rather than sustain losses indefinitely. In view of this, it is also proposed that losses are less effective than profits as indicators of the company's future prospects. These hypotheses are tested and found to be valid. The results also indicate that effects of losses can explain the observed increase in the earnings response coefficient as the cumulation period increases.

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Discretionary-accruals models and audit qualifications

Article Abstract:

Research is presented describing the study of audit qualifications and discretionary accrual models on earnings management and the use of time-series counterpart studies.

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The changing time-series properties of earnings, cash flows and accruals: Has financial reporting become more conservative?

Article Abstract:

Research is presented describing the trend towards conservative financial reporting techniques when dealing with accruals, cash flows, losses and earnings.

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