A Theory of Principles-Based Classification
A Theory of Principles-Based Classification
dc.contributor.author | Konvalinka, Matjaž | |
dc.contributor.author | Penno, Mark | |
dc.contributor.author | Stecher, Jack | |
dc.date.accessioned | 2020-12-01T01:02:04Z | |
dc.date.available | 2020-12-01T01:02:04Z | |
dc.date.issued | 2020-08-18 | |
dc.description.abstract | We study a firm's decision to classify transactions as recurring or nonrecurring in a setting with no fixed classification scheme, but with the following principle: recurring transactions must be more persistent than nonrecurring ones. Under this principle, equilibrium firm behavior provides a new explanation for the observed relationship between income and classifications. Moreover, we find that market prices are more informative under principles-based classifications than they would be under a hypothetical, optimally chosen specific classification rule | |
dc.identifier.uri | http://hdl.handle.net/10125/70556 | |
dc.subject | Classification Shifting | |
dc.subject | Earnings Management | |
dc.subject | Principles | |
dc.subject | Rules | |
dc.subject | Signaling | |
dc.title | A Theory of Principles-Based Classification |
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