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Book The Economic Consequences of SFAS No 2

Download or read book The Economic Consequences of SFAS No 2 written by Soon Suk Yoon and published by . This book was released on 1987 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book The Economic Consequences of SFAS

Download or read book The Economic Consequences of SFAS written by Abraham Nathan Fried and published by . This book was released on 2009 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book ECONOMIC CONSEQUENCES OF SFAS 158

Download or read book ECONOMIC CONSEQUENCES OF SFAS 158 written by Fang Sun and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Business Administration/Accounting

Book The Economic Consequences of SFAS 166 167 Evidence from Banks

Download or read book The Economic Consequences of SFAS 166 167 Evidence from Banks written by Qiuhong Zhao and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether SFAS 166/167 eliminating the exclusion of consolidation for qualifying special purpose entities (QSPEs) impacted the cost of equity capital for a sample of banks. This exclusion previously allowed banks to avoid consolidation of many asset securitization transactions, and these types of transactions become increasingly prevalent during and after the financial crisis of the late 2000's. We compare changes in the cost of equity capital for a treatment sample of firms that consolidated special purpose entities after implementation of SFAS 166/167 to changes in the cost of equity capital for a control group that reported no material impact from implementation of SFAS 166/167. We find that after SFAS 166/167, the cost of equity capital increased more for the group of firms consolidating previously unconsolidated SPE's than for the firms that were relatively unaffected by the rule change. In sum, the results suggest that SFAS 166/167 resulted in an increased cost of equity capital as the consolidations of former QSPEs and expanded disclosures of VIEs as a consequence of the revised standards might convey new risks to the market, while SFAS 166/167 might improve the transparency of information regarding QSPEs.

Book The Impact of SFAS 160

    The Impact of SFAS 160

    Book Details:
  • Author : Richard M. Frankel
  • Publisher :
  • Release : 2010
  • ISBN :
  • Pages : 0 pages

Download or read book The Impact of SFAS 160 written by Richard M. Frankel and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine firms' behavior around the adoption of SFAS 160 to provide evidence on the costs and benefits associated with mandated accounting changes. The reclassification of minority interest to equity mandated by SFAS 160 can result in a wealth transfer from bondholders to stockholders. However, lenders can limit this transfer by renegotiating agreements. Consistent with these conjectures, we find that the abnormal returns surrounding the release of SFAS 160 are increasing with the level of minority interest, but decreasing for firms in the highest tercile of long-term debt. To provide direct evidence of re-contracting, we examine lending agreements for exclusions of minority interest from net worth but do not find an increase in new exclusions after SFAS 160. We also examine whether firms' choice to include minority interest as a liability prior to SFAS 160 is related to firms' stock returns at the release of SFAS 160. We expect and find a negative relation between the decision to classify minority interest as a liability and the stock return, but the relation is not statistically significant. We find that firms with minority interest following IFRS exhibit higher stock returns suggesting these firms benefit from increased congruence with U.S. GAAP. Finally, we examine post-160 changes in merger activity and find that firms did not exploit the provisions of SFAS 160 to increase debt covenant slack by engaging in a higher proportion of partial acquisitions ex post. We conclude that existing shareholders of firms with minority interest benefited from SFAS 160, but wealth transfers from bondholders were not sufficient to warrant alteration of debt contracts nor were such benefits sufficient to alter the structure of acquisition transactions.

Book The Economic Impacts of SFAS 8 and 52 on the Capital Market

Download or read book The Economic Impacts of SFAS 8 and 52 on the Capital Market written by Boyer, Benoît and published by Québec : Faculté des sciences de l'administration, Université Laval. This book was released on 1989 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book The Effect of SFAS No 142 on the Ability of Goodwill Predicting Future Cash Flows

Download or read book The Effect of SFAS No 142 on the Ability of Goodwill Predicting Future Cash Flows written by Cheol Lee and published by . This book was released on 2007 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the effects of Statement of Financial Accounting Standard No. 142 (SFAS No. 142) on the ability of goodwill to predict future cash flows. SFAS No. 142 allows substantial unverified managerial discretion and leads to a significant magnitude of economic impact on financial statements, resulting in critical debates over the consequence of its adoption. I find that the ability of goodwill to predict future cash flows has improved since the FASB adopted SFAS No. 142. Further analysis documents that goodwill's explanatory power for future cash flows is enhanced in the partitioned sample with a high level of managerial discretion, but not in the sample with a low level of managerial discretion in the pre-SFAS No. 142 period. Overall, contrary to the position of critics of SFAS No. 142, results support the view taken by the FASB and proponents of SFAS No. 142: expanding managerial discretion with the adoption of SFAS No. 142 improves managers' ability to signal future cash flows and this positive effect is stronger than the offsetting the effect of opportunistic reporting.

Book Economic Consequences of Mandated Accounting Disclosures

Download or read book Economic Consequences of Mandated Accounting Disclosures written by Elizabeth Chuk and published by . This book was released on 2015 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: I examine whether firms alter their behavior in response to changes in accounting standards mandating new financial statement disclosures. While prior research suggests that new recognition rules lead to changes in firm behavior, there is limited evidence that disclosure rules can impact firm behavior. I fill this void in the literature by examining the economic consequences of the mandated disclosures of pension asset composition required under SFAS 132R. Under pension accounting rules, the composition of pension assets is a key determinant of the assumed expected rate of return (ERR) on pension assets. I find that when firms disclose asset composition for the first time under SFAS 132R, firms that are previously using upward biased ERRs respond by (i) increasing asset allocation to high-risk securities and/or (ii) reducing the ERR assumption. While disclosure requirements arguably create less powerful incentives to alter firm decisions than recognition requirements, my findings offer evidence that firms alter their behavior in response to disclosure standards.

Book Accounting Theory

Download or read book Accounting Theory written by Harry I. Wolk and published by SAGE. This book was released on 2008 with total page 697 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presents complex materials in a clear and understandable manner. Incorporating the latest accounting standards and presenting the most up-to-date accounting theory from the top academic journals in accounting and finance throughout the world.

Book Economic Consequences of Alternative Adoption Rules for New Accounting Standards

Download or read book Economic Consequences of Alternative Adoption Rules for New Accounting Standards written by Eli Amir and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop a theoretical framework that explains firms' reactions to new accounting standards, especially, those released by the FASB under its extended adoption policy. Our theory highlights the differences between recognized and disclosed accounting information, and provides a link between firms' adoption strategy and stock price behavior around the adoption announcement. We also consider the relation between delaying information release and renegotiating related contracts. Finally, we analyze the impact of alternative adoption policies allowed by a regulator. We argue that mangers utilize the extended adoption period and strategically choose adoption timing and reporting method to convey to the market their private information about the new standard's financial impact. our model predicts that firm with "favorable" information recognize the impact of the new standard earlier than the mandatory adoption date, firms with "neutral" information disclose the impact in the footnotes to the financial statements, and firms with "unfavorable" information defer reporting until the mandatory adoption date and renegotiate the underlying contract. As a result, a positive market reaction to an early-adoption (recognition) decision is anticipated. In our companion study, Amir and Ziv (1997), obtain results that are consistent with these predictions, using data on SFAS 106 adoption.

Book Economic Consequences of Disclosure Regulation

Download or read book Economic Consequences of Disclosure Regulation written by Ying Zhou and published by . This book was released on 2014 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: Lobbied against the proposed standard would incur higher proprietary disclosure costs from SFAS 131 than other industries and I identify lobbying industries based on companies' comment letters on the Exposure Draft of the standard. I find that an industry was more likely to lobby against the standard if public firms in that industry as a whole commanded a larger market share, enjoyed more persistent abnormal profits, had higher R & D activities, and faced more private competitors. In my primary test I find that after the adoption of SFAS 131, public firms in a lobbying industry experienced a significant decline in their aggregate product market share relative to those in a non-lobbying industry, confirming companies' concerns about the competitive harm of disclosures required by SFAS 131. My study contributes to the literature by providing evidence on the real market-wide effects, as opposed to the informational firm-specific effects, of a disclosure regulation.