Penman on Financial Statement Presentation

In preparation for his FASRI Roundtable discussion, Stephen Penman has helpfully shared his CEASA White Paper on Financial Statement Presention, which you can download here. The paper discusses disaggregation in some depth, providing guidelines for how line items should be disaggregated on both the income statement and the balance sheet.  I need to read more [...] Read more > >

Stephen Penman Leads Roundtable Discussion

You may know Columbia Business School Professor Stephen Penman as the 14th-most downloaded author on SSRN.  Or you might know him as a Director of the Center for Excellence in Accounting and Security Analysis. Or perhaps as author of Financial Statement Analysis and Security Valuation. More recently, Stephen has been visible as a critic of [...] Read more > >

Stewardship, Financial Reporting, and Investment

We had a very interesting discussion with Gilles Hilary and Rodrigo Verdi on their paper linking better financial reporting quality to less overinvestment among firms with lots of cash on hand and less underinvestment among firms with lots of leverage.  It sparked a number of questions, so of which I recount here: What specific aspects [...] Read more > >

Round Table Discussion on Financial Reporting Quality and Investment Efficiency

On Wednesday, Oct 28th, 11 am ET, we will be joined by Gilles Hilary (HEC Paris) and Rodrigo Verdi (MIT). They will be discussing their paper, entitled “How Does Financial Reporting Quality Relate to Investment Efficiency?” The paper is co-authored with Gary Biddle at the University of Hong Kong. The abstract of their paper reads: Read more > >

Follow up to round table on Reg FD

We had a great discussion about Reg FD and foreign filers on Tuesday.  If you were not able to attend, I encourage you to view the archive.  When you do so, you will notice several text comments from me (Accounting Footman) that may at first seem very critical of the study.  I want to clarify [...] Read more > >

Round Table Discussion on Regulation FD

On Tuesday, Oct 20th, 4 pm ET, we will be joined by Bin Ke (Penn State University).  Bin will be discussing his recent paper, entitled “Why do cross-listed firms voluntarily adopt Regulation Fair Disclosure?” The paper is co-authored with Michael Crawley and Yong Yu, both of whom are from the University of Texas at Austin. [...] Read more > >

What Do Standard Setters Optimize?

It is the rare academic article that explicitly considers the objective function of the regulator.  William Bratton is a law professor from Georgetown who takes exactly this focus, and will joins us at the FASRI Roundtable on Wednesday, October 14th at 11am ET to lead us through the thicket of political pressures and machinations that [...] Read more > >

Revenue Recognition and “Libby Boxes”: Research Brainstorming Roundtable

Revenue recognition is one of FASRI’s key target areas for research over the coming year.   We are going to take a big step forward on Tuesday, October 6th, 4pm by laying out some possible approaches to research studies on RevRec.  We will be structuring our discussion around the key independent variables that researchers might have [...] Read more > >

Round Table Discussion on Earnings Management

On Wednesday, Sept 30th, 11 am ET, we will be joined by Kathy Petroni (Michigan State University). Kathy will be talking about her paper, entitled “CFOs and CEOs:  Who Have the Most Influence on Earnings Management?”  The paper is forthcoming in the Journal of Financial Economics, and is co-authored with John (Xuefeng) Jiang and Isabel [...] Read more > >

What makes a component of income SPECIAL?

  I thought we had a great discussion last Wednesday  regarding the link between revenues and expenses.  For those who could not attend, you can listen to the archive session.   One of the key results in the Donelson, Jennings, and McInnis paper is that the special items component of earnings has increased recently, and this [...] Read more > >