Date of Award
12-2024
Document Type
Campus Access Dissertation
Degree Name
Doctor of Philosophy (PhD)
Department
Business Administration
First Advisor
Xiaolu Xu
Second Advisor
Kun Yu
Third Advisor
Wan-Ting Wu, Jay Junghun Lee
Abstract
This dissertation examines the critical role of accounting information in various aspects of corporate decision-making and valuation. It is structured into three essays, each delving into different facets of accounting information's implications. The dissertation consists of the following essays: The first essay, “Does Product Market Competition Induce Firms to Engage in Commodity Derivatives Hedging: Evidence from the Metal Industry,” explores the relationship between product market competition and corporate decision-making processes through the lens of accounting information. This essay analyzes how firms use commodity derivatives hedging as a tool to control earnings volatility when product market competition is intense, thereby influencing their overall risk management and financial performance. It highlights the importance of commodity derivatives hedging in risk management and financial performance. The second essay, “Derivatives on Foreign Currency Exposure and Analysts’ Earnings Predictability: Evidence from the Automotive Industry,” focuses on the influence of foreign currency derivatives on analysts' earnings forecasts. It investigates how currency risk management affects analysts’ earnings predictions. By examining an industry with heavy currency derivative use, this essay emphasizes the importance of currency risk volatility control and the use of derivatives hedging, which can enhance analysts’ ability to provide accurate forecasts, thereby affecting investor confidence and market dynamics. The final essay, “The Value Relevance of Revenue Recognition Before and After ASC 606 Adoption,” investigates the impact of changes in accounting information on firm value, specifically comparing the value relevance of earnings data before and after the adoption of the ASC 606 standard. This essay evaluates how the new standard has improved the way revenue is recognized and reported, and how these changes affect stakeholders’ perceptions of a company's financial performance. By comparing pre- and post-ASC 606 earnings data, the study provides insights into the evolving practice of accounting standards and their implications for assessing firm value. Together, these essays provide a comprehensive overview of the significant implications of accounting information in strategic decision-making, financial analysis, and valuation, enhancing our understanding of its essential role in the earnings environment.
Recommended Citation
Dangwung, Phoompat, "Three Essays on Earnings Information Implications" (2024). Graduate Doctoral Dissertations. 1018.
https://scholarworks.umb.edu/doctoral_dissertations/1018
Comments
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