Optimal Financial Reporting and Equity Returns: Evidence from Commercial Banks

Review of Accounting and Finance - 2002
Craig E.Lefanowicz1, Malcolm J.McLelland2
1Michigan State University
2University of Illinois at Chicago

Tóm tắt

This study develops a hypothesis from asset pricing theory and optimization theory that in a diversified portfolio of equity securities there is no linear relationship between equilibrium equity returns and financial reporting variables subject to managerial discretion, only a nonlinear relationship. Alternatively stated, this study presents theory and evidence suggesting that linear conditional mean effects of discretionary financial reporting variables on equity returns for an industry portfolio of firms are zero, while the nonlinear conditional mean effects are nonzero.

Từ khóa


Tài liệu tham khảo

10.1016/S0165-4101(99)00017-8

Anthony Joseph, Unpublished manuscript

Botosan Christine, 1997, The Accounting Review v72, 323

10.1111/j.1540-6261.1991.tb04620.x

10.2307/2491293

James Wahlen, 2001, The Accounting Review v77, 133

Miller Gregory, 1998, The Accounting Review v73, 213

10.2307/2118468

Ross Stephen, 1976, Journal ofBusiness v53, 453

Visvanathan Gnanakumar, 1998, Journal of Financial Statement Analysis v3(4), 6

Wahlen James, 1994, The Accounting Review v69, 455

10.2307/2491432

Thông tin
Thông tin xuất bản

Review of Accounting and Finance

Thông tin tác giả