Accounting Changes and Stock Prices: An Examination of Selected Uncontrolled Variables

摘要: This paper is presented within the context of two streams research which can be identified in current literature empirical accounting research. Both these areas deal with changes methods. The first deals motivation for It represented by such papers as: Gordon, Horwitz, and Meyers [1966], Copeland [1968], Gagnon [1967], Cushing [1969]-income smoothing; Sorter, Becker, Archibald, Beaver [1964]-intolerance ambiguity; Shank [1971]-diffusion innovation; Gosman [1973]firm size, industry classification, auditors; Moore [1973]-change management. In second area, attempts are made to discover consequences terms reaction capital markets output process. Appealing theory market efficiency [Fama 1970] framework two-parameter asset pricing model [Sharpe 1964; Lintner 1965], researchers conclude that a change method per se has little effect on price unless accompanied affecting economic value firm. Representative are: Kaplan Roll [1972], Baskin Archibald [1972]-investment credit depreciation; Ball