O'Reilly logo

The End of Accounting and the Path Forward for Investors and Managers by Feng Gu, Baruch Lev

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 7The Meaning of It All

To Recap

We have presented in this, the first part of the book, comprehensive evidence that clearly portrays a continuous and steep deterioration in the usefulness of financial (accounting) information to investors.1 The evidence, based on large samples comprising of most US public companies, spans the past half century, and examines information usefulness from four different perspectives:

  • The role of key financial report indicators—sales, cost of sales, SG&A expenses, earnings, assets and liabilities—in investors' equity decisions.
  • The timeliness (decision relevance) of financial information released to investors.
  • A capital market-free test: the ability of reported earnings to predict future corporate performance.
  • The quality of the financial information ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required