File Download
There are no files associated with this item.
Links for fulltext
(May Require Subscription)
- Publisher Website: 10.1111/jbfa.12072
- Scopus: eid_2-s2.0-84904268686
- WOS: WOS:000340670800005
- Find via
Supplementary
- Citations:
- Appears in Collections:
Article: The market's valuation of fraudulently reported earnings
Title | The market's valuation of fraudulently reported earnings |
---|---|
Authors | |
Keywords | Market valuation Accounting fraud Earnings coefficient |
Issue Date | 2014 |
Citation | Journal of Business Finance and Accounting, 2014, v. 41, n. 5-6, p. 627-651 How to Cite? |
Abstract | This study examines the market valuation of accounting earnings during the period before it is publicly revealed that the earnings are fraudulent. Using both cross-sectional and time-series valuation models, we first find that the market accords less weight to earnings when the accounting numbers are fraudulent. We also show that the market better anticipates the presence of fraud when there is information in the public domain indicating a high ex-ante risk of fraud. Our findings suggest that investors are able to accurately assess the probability of fraud and that such assessments affect the market's valuation of earnings even before it is publicly announced that fraud has occurred. © 2014 John Wiley & Sons Ltd. |
Persistent Identifier | http://hdl.handle.net/10722/233736 |
ISSN | 2023 Impact Factor: 2.2 2023 SCImago Journal Rankings: 1.283 |
ISI Accession Number ID |
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Hui, Kai Wai | - |
dc.contributor.author | Lennox, Clive | - |
dc.contributor.author | Zhang, Guochang | - |
dc.date.accessioned | 2016-09-27T07:21:30Z | - |
dc.date.available | 2016-09-27T07:21:30Z | - |
dc.date.issued | 2014 | - |
dc.identifier.citation | Journal of Business Finance and Accounting, 2014, v. 41, n. 5-6, p. 627-651 | - |
dc.identifier.issn | 0306-686X | - |
dc.identifier.uri | http://hdl.handle.net/10722/233736 | - |
dc.description.abstract | This study examines the market valuation of accounting earnings during the period before it is publicly revealed that the earnings are fraudulent. Using both cross-sectional and time-series valuation models, we first find that the market accords less weight to earnings when the accounting numbers are fraudulent. We also show that the market better anticipates the presence of fraud when there is information in the public domain indicating a high ex-ante risk of fraud. Our findings suggest that investors are able to accurately assess the probability of fraud and that such assessments affect the market's valuation of earnings even before it is publicly announced that fraud has occurred. © 2014 John Wiley & Sons Ltd. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of Business Finance and Accounting | - |
dc.subject | Market valuation | - |
dc.subject | Accounting fraud | - |
dc.subject | Earnings coefficient | - |
dc.title | The market's valuation of fraudulently reported earnings | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1111/jbfa.12072 | - |
dc.identifier.scopus | eid_2-s2.0-84904268686 | - |
dc.identifier.volume | 41 | - |
dc.identifier.issue | 5-6 | - |
dc.identifier.spage | 627 | - |
dc.identifier.epage | 651 | - |
dc.identifier.eissn | 1468-5957 | - |
dc.identifier.isi | WOS:000340670800005 | - |
dc.identifier.issnl | 0306-686X | - |