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Looks at fraud and crime in the accounting world. States that beside the conflict approach there are also the ecological theory, cultural transmission theory, and anomie (normlessness or lack of regulation), which can explain deviant behaviour. Gives a framework for fraud in accounting, listing the six points where corporate fraud, white‐collar crime, fraudulent financial reporting and audit failures most often occur. Conclusions given are that greater concern is being shown for business ethics — particularly in the USA.

The objective of this study is to determine whether value added variables possess incremental information beyond accrual earnings in the context of explaining security return. The evidence points to the superior explanatory power of value added variables in explaining security returns of US firms that disclose data needed for the computation of net value added. A case can be made for the disclosure of value added reports in the US.

This study developed and tested a model that attempts to describe the influence of CEO experience, nature of the deviation from the analysts' forecasts and measures of firm performance on executive compensation. Results based on data from a cross‐sectional set of 247 firms from 22 industries verified the model.

Summarizes previous valuation models based on accounting information, extends the basic model to include dividends and retained earnings, and develops hypotheses on the relationship between share prices, dividends and earnings for firms with different investment opportunity set (IOS) levels. Tests them using 1992‐1998 data on a sample of US multinationals and shows that the share prices of firms with high IOS levels are related to retained earnings and less strongly to dividends; while for low IOS firms dividends are more relevant than earnings.

The paper explores the impact of the quality of accounting in a given country, as measured by an index of earnings opacity, on the country's level of corruption. The results of a regression of corruption on earnings opacity for a sample of 34 countries show significant relationships between the level of corruption and the level of earnings opacity after controlling for economic development, human development, size of government and economic freedom.

Discusses three theories on the link between multinationality and investment value (internalization, imperfect world capital markets and managerial objectives) and develops hypotheses on its relationship with the informativeness of accounting earnings and levels of discretionary accruals. Tests them on 1994‐1998 data from a sample of US multinationals using regression techniques; and presents the results which suggest that the level of multinationality is positively related to the magnitude of discretionary accruals and to the informativeness of accounting earnings.

This study examined the relation between performance plan adoption and profitability. It posits that the nature of this relation varies with the ownership structure of the firm, arguing that following performance plan adoption, profitability will increase in owner‐controlled firms. Results based on data from a usable sample of 70 US firms support this contention with respect to owner‐controlled firms but not manager‐controlled firms.

This study investigates the usefulness of net value added in explaining stock returns of a sample of US firms. The results provide evidence that current and past levels of net value added or current and past levels of changes in net value added are associated with stock returns. A case may be made for the disclosure of value added information by US firms.

Outlines the valuation models of Ohlson (1995) and Feltham and Ohlson (1995), which relate share prices to accounting data, and develops a version which substitutes net value added for earnings. Tests it on 1978‐1995 US data and shows that it is better than the conventional model at explaining price. Recommends that future capital market research should consider net value added as an alternative to earnings for wealth measurement.

Investigates whether the investment opportunities available to US multinationals affect their profitability relationships. Samples 100 firms from 1987 to 1992, and classifies them by high or low multinationality and high or low growth. Correlates three measures of multinationality, and of the opportunity set for each quartile, and compares the rate of return on assets by multinationality and by growth. Presents the interaction effects of means, finding that high multinationality firms have higher rates of return on assets, and so do high growth firms. Links profitability, multinationality and the investment opportunity set.