I review empirical research on the relation between capital markets and financial statements.
The principal sources of demand for capital markets research in accounting are fundamental …

This paper examines if the stock market prices discretionary accruals. Evidence reveals that,
on average, the market attaches value to discretionary accruals. This evidence is consistent …

We examine the relevance to investors of information on the capitali-zation of software
development costs, in accordance with the Financial Accounting Standards Board's …

Return models (returns regressed on scaled earnings variables) are commonly preferred to
price models (stock price regressed on earnings per share). We provide a framework for …

With the exception of financial firms, we find no evidence that comprehensive income is
more strongly associated with returns/market value or better predicts future cash …

We assess earning's lack of timeliness and value-irrelavant noise in earnings as
explanations for the weak contemporaneous return-earnings assocation. Earnings lack …

This paper compares the information content and timeliness of accounting earnings in
several countries using the United States as a benchmark. We perform two types of …

Since the early 1980s, earnings forecasting research has become much more closely
aligned with capital markets research. Capital markets research requires a proxy for the …

The paper analyzes the contemporaneous association between market returns and
earnings for long return intervals. The research design exploits two fundamental accounting …

This paper revisits Ohlson 1995 to make a number of points not generally appreciated in the
literature. First, the residual income valuation (RIV) model does not serve as a crucial …