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This evidence suggests that future research into the governance role of financial accounting information has the potential to detect first-order economic effects. schools for accounting Hopkins (1996) examined the effects of classification of items on the right side of the balance sheet as debt, equity, or mezzanine financing on judgments of the stock price effects of new financing. business school accounting The sensitivity deriving from cash compensation is generally swamped by that deriving from stock and stock option portfolios. This framework isolates three channels through which financial accounting information can affect the investments, productivity, and value-added of firms. schools for accounting




accounting schools This evidence suggests that future research into the governance role of financial accounting information has the potential to detect first-order economic effects. small business accounting Financial accounting information is the product of corporate accounting and external reporting systems that measure and publicly disclose audited, quantitative data concerning the financial position and performance of publicly held firms. In what follows, we develop the theoretical framework underlying much of this research, provide a general discussion of empirical design and econometric issues, and review and analyze existing research studies. business school accounting Preliminary results from this emerging literature provide encouraging new evidence of a positive relation between the quality of financial accounting information and economic performance. schools for accounting However, some of the proposed interactions illustrated in Fig. small business accounting
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