Income statement mismatching has not reduced the informativeness of earnings over time

IF 2.2 3区管理学 Q2 BUSINESS, FINANCE

Journal of Business Finance & Accounting Pub Date : 2023-10-12 DOI:10.1111/jbfa.12759

Hyung Il Oh, Stephen Penman

引用次数: 0

Abstract

Research has concluded that there has been a decline in the informativeness of earnings over recent years. The reported decline has been attributed to an increasing mismatch of expenses to revenues due to the increasing expensing of investments in so-called intangible assets to the income statement. That suggests a remedy is required and, with accounting standards boards now considering intangible asset accounting, the issue is particularly pertinent. However, his paper challenges the conclusions from the research by documenting that the mismatching adds information for pricing. It does so by distinguishing higher risk investment from that booked to the balance sheet, and the market prices it as such. Further, in a seeming contradiction, the mismatching enhances matching, and empirical tests confirm. Once mismatched expenses and matched earnings are separated, there is little indication of a decline in the information content of accounting over time.

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随着时间的推移，利润表错配并没有降低盈利的信息量

研究得出的结论是，近年来收益的信息量有所下降。据报告，下降的原因是，由于所谓的无形资产投资越来越多地计入损益表，导致支出与收入越来越不匹配。这表明需要采取补救措施，而且由于会计准则委员会目前正在考虑无形资产会计问题，因此这一问题尤为重要。不过，他的论文对研究结论提出了质疑，指出错配增加了定价信息。它将高风险投资与记入资产负债表的投资区分开来，市场也是这样定价的。此外，一个看似矛盾的现象是，错配增强了匹配，而经验测试也证实了这一点。一旦错配的支出和匹配的收益分开，几乎没有迹象表明会计的信息含量会随着时间的推移而下降。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Business Finance & Accounting BUSINESS, FINANCE-

CiteScore

4.40

自引率

17.20%

发文量

期刊介绍： Journal of Business Finance and Accounting exists to publish high quality research papers in accounting, corporate finance, corporate governance and their interfaces. The interfaces are relevant in many areas such as financial reporting and communication, valuation, financial performance measurement and managerial reward and control structures. A feature of JBFA is that it recognises that informational problems are pervasive in financial markets and business organisations, and that accounting plays an important role in resolving such problems. JBFA welcomes both theoretical and empirical contributions. Nonetheless, theoretical papers should yield novel testable implications, and empirical papers should be theoretically well-motivated. The Editors view accounting and finance as being closely related to economics and, as a consequence, papers submitted will often have theoretical motivations that are grounded in economics. JBFA, however, also seeks papers that complement economics-based theorising with theoretical developments originating in other social science disciplines or traditions. While many papers in JBFA use econometric or related empirical methods, the Editors also welcome contributions that use other empirical research methods. Although the scope of JBFA is broad, it is not a suitable outlet for highly abstract mathematical papers, or empirical papers with inadequate theoretical motivation. Also, papers that study asset pricing, or the operations of financial markets, should have direct implications for one or more of preparers, regulators, users of financial statements, and corporate financial decision makers, or at least should have implications for the development of future research relevant to such users.