School Professor wins accounting literature award
Associate Professor of Accounting, Irem Tuna's co-authored research Accrual reliability, earnings persistence and stock prices has won this year's AICPA/AAA Notable Contributions to the Accounting Literature Award
This paper investigates the relation between accrual reliability and earning persistence, and documents significant costs from recognizing less reliable information in financial statements. Less reliable accruals result in less persistent earnings and investors do not seem to anticipate this lower persistence of less reliable accruals, leading to significant security mispricing. These results show that the recent move by accounting standard setters towards recognizing less reliable information in financial statements may be extremely costly.
The award, judged on criteria such as; uniqueness and potential magnitude of contribution to accounting education, practice and/or future accounting research, originality and innovative content and soundness and appropriateness of methodology, recognises books and/or articles deemed to make an outstanding contribution to accounting literature.