Review of Accounting and Finance: Volume 11 Issue 2

Bloated balance sheet, earnings management, and forecast guidance

Li‐Chin Jennifer Ho, Chao‐Shin Liu, Bo Ouyang

Barton and Simko argue that the balance sheet information would serve as a constraint on accrual‐based earnings management. This paper aims to extend their argument by examining…

Does overlapping membership on audit and compensation committees improve a firm's financial reporting quality?

Nandini Chandar, Hsihui Chang, Xiaochuan Zheng

The purpose of this paper is to examine whether audit committee members of the board prove to be better monitors if they are also on the compensation committee, as they would be…

More power to you: properties of a more powerful event study methodology

Tarcisio da Graca, Robert Masson

The purpose of this paper is to demonstrate with real data the enhanced statistical power of a GLS‐based event study methodology that requires the same input data as the…

Ripple effects: Sarbanes Oxley's impact upon investor risk in a global economy

Nicholas V. Vakkur, Zulma J. Herrera‐Vakkur

This study seeks to evaluate, in a global context, the impact of Sarbanes Oxley Act on a particular risk measure of importance to investors (risk‐adjusted returns), and two…

Interest barrier rules as a response to highly leveraged transactions: Evidence from the 2008 German business tax reform

Thorsten Knauer, Friedrich Sommer

The tax advantage of debt is considered an important motivation for highly leveraged transactions. The German government limited the tax deductibility of interest expenses to 30.0…