Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Share Icon Share Facebook Twitter LinkedIn Email Tools Icon Tools Get Permissions Search Site Cite View This Citation Add to Citation Manager Citation William R. Kinney; Accounting Scholarship: What Is Uniquely Ours?. The Accounting Review 1 April 2001; 76 (2): 275–284. https://doi.org/10.2308/accr.2001.76.2.275 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentThe Accounting Review Search Advanced Search

[This paper models the effect of information on security prices when there is uncertainty regarding the precision of information. When uncertainty regarding precision is allowed, price response to information is neither linear nor even necessarily monotonic, because the market revises its expectation regarding the precision based on the signal realization. When the underlying information structure is conditionally multivariate normal, the price response (return) is nonlinear with the average response (response per unit of surprise) declining in the absolute magnitude of surprise. This nonlinearity occurs because the market associates lower precision with extreme news. When the precision is distributed in the form of a gamma, the returns function is unimodal in each quadrant ("S-shaped") and negatively sloped at the extremes. The extent of nonlinearity increases in the ex ante uncertainty regarding both the asset value and the precision of information.]

Studies the extent to which corporate information senders develop reputations for truthful reporting. Reputation formation; Incentives for voluntary dissemination of information; Buyers' forecasting and bidding strategies.

[This paper presents the results of an experiment designed to investigate the extent to which information senders develop reputations for truthful reporting. The results indicate that senders were more likely to report truthfully when their misrepresentations imposed costs on the receivers of their reports. With repeated interactions, receivers of the reports were able to discern the sender's reporting strategies, but provided no economic reward for truthfulness.]

[This study uses data on 123 firms over an 11 year period to examine whether the accounting for employee stock options permits them to be used as part of an income management strategy. Using a pooled cross-sectional, time-series analysis, the value of options granted is found to be negatively related to the extent the firm is below its target level of income and positively related to the firm's use of income-increasing accounting methods. I also find weak evidence of a positive relation between the firm's relative use of income-increasing accounting methods and the probability of issuing unattached stock options rather than income-decreasing securities such as stock appreciation rights or tandem securities. However, the results from both tests are sensitive to the estimation method and are not consistent over time.]

Examines the effects of accounting on the use of employee stock options. Value of options granted; Relation between the firm's use of income-increasing accounting methods and probability of issuing stock options.

Reviews the book "The Information MOSAIC," by Sharon M. McKinnon and William J. Bruns, Jr.

Reviews the book "Global Company Handbook: An Analysis of the Financial Performance of the World's Leading 7,500 Companies," by Vinod B. Bavishi.

[This research examines the effect that adoption of earnings-based incentive plans has on performance and capital expenditure policy in the motor carrier industry. The motor carrier industry provides the opportunity to study the effect of incentive plans on small, closely-held organizations. Restricting the sample to a single industry controls for variations in accounting procedures, heterogeneous production functions, and other environmental factors. Firms that adopted bonus and performance plans are matched with similar firms without such plans. The matching criteria are size, carrier type, and freight classification. The dependent variables are operating ratio, net income, capital expenditures, and maintenance expenditures. The analysis investigates the extent to which the groups differ in performance and investment policy before and after plan adoption. The results indicate that motor carriers that adopted bonus plans had out-performed the respective control firms during the post-adoptive period. This relatively improved performance is not linked to reductions in capital or maintenance expenditures. Although the results for performance plan adopters are in the expected directions, they are not statistically significant.]

This research examines the effect that adoption of earnings-based incentive plans has on performance and capital expenditure policy in the motor carrier industry. The motor carrier industry provides the opportunity to study the effect of incentive plans on small, closely-held organizations. Restricting the sample to a single industry controls for variations in accounting procedures, heterogeneous production functions, and other environmental factors. Firms that adopted bonus and performance plans are matched with similar firms without such plans. The matching criteria are size, carrier type, and freight classification. The dependent variables are operating ratio, net income, capital expenditures, and maintenance expenditures. The analysis investigates the extent to which the groups differ in performance and investment policy before and after plan adoption. The results indicate that motor carriers that adopted bonus plans had out-performed the respective control firms during the post-adoptive period. This relatively improved performance is not linked to reductions in capital or maintenance expenditures. Although the results for performance plan adopters are in the expected directions, they are not statistically significant.