2004 Fiscal Year Final Research Report Summary
Empirical research of the impact of accounting standards formulation process and regulation on capital market
| Project/Area Number |
15330093
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| Research Category |
Grant-in-Aid for Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | Waseda University |
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Principal Investigator |
HAH Eitoku Waseda University, Faculty of Commerce, Professor, 商学学術院・商学部, 教授 (70228378)
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| Co-Investigator(Kenkyū-buntansha) |
ISHIZUKA Hiroshi Waseda University, Faculty of Commerce, Professor, 商学学術院・大学院・商学研究科, 教授 (40063614)
SATO Hiromitsu Waseda University, Faculty of Social Sciences, Professor, 社会科学総合学術院・社会科学部, 教授 (40063747)
USUI Akira Waseda University, Faculty of Commerce, Professor, 商学学術院・大学院・ファイナンス研究科, 教授 (90193870)
SUDA Kazuyuki Waseda University, Faculty of Commerce, Professor, 商学学術院・大学院・ファイナンス研究科, 教授 (00171273)
INOUE Tatsuo Kwansei Gakuin University, School of Business Administration, Professor, 商学部, 教授 (70203239)
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| Project Period (FY) |
2003 – 2004
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| Keywords | Japanese accounting standards / Accounting regulation / Empirical research / Pricing at capital market / Agency theory / Discretionary disclosure / Quality of earnings / Cash flow |
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| Research Abstract |
Three categorized researches have been conducted during the research period ; (i)empirical researches on strategic information disclosures, (ii)analyses of the relationships between management and shareholders/debt holders, and (iii)empirical studies on the pricing at the capital market. Several research results acquired listed below.
(1)Reviewing the past 25 years empirical accounting studies, the trends and characteristics of Japanese empirical researches were explicated.
(2)In the multi-period principal-agent model, (pure) residual income could only be objective-consistent to motivate the manager to take first-best investment decision and first-best effort level on ordinary work when expense-revenue matching accounting is required.
(3)By clarifying that the implementation of new standard for current price evaluation of securities brought both benefits and costs to the listed companies, the possibility of failure of the accounting standards system were pointed out.
(4)Analyzing usefulness of accounting earnings and cash flow information of both ordinary and financially stressed companies, it was confirmed that operating cash flow information retained more explanatory power for stock prices than current earnings information.
(5)As a result of the analysis of timing of annual earnings announcements in parent and listed subsidiary companies, there were stock prices reactions of subsidiary/parent company at the earnings announcements of the consolidated/subsidiary company. It became clear that timing of annual earnings announcement had affected the information contents.
(6)The precision of earnings forecast had been significantly improved in the companies with normalization of a stockholders general meeting and the improvement of the precision of earnings forecast was not derived from the earnings management behavior.
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Research Products
(36 results)
