{"id":{"repo_id":"lsu-thes","oai_identifier":"oai:repository.lsu.edu:gradschool_dissertations-1314"},"canonical_url":"https://search.dev.ndltd.org/etd/lsu-thes/oai:repository.lsu.edu:gradschool_dissertations-1314","repository":{"repo_id":"lsu-thes","name":"Lousiana State University","base_url":"https://repository.lsu.edu/do/oai/"},"display":{"title":"Has the FASB and IASB's Shift toward an Asset/Liability View Enhanced the Predictive Usefulness of ROE?","abstract":"Over the past several decades, accounting standard setters have been gradually shifting financial reporting toward an asset/liability view, by rewriting the underlying conceptual framework and issuing accounting standards that reflect this view. The asset/liability view enhances comparability of a firm’s investment base to that of its peers, and thus enhances the comparability of a firm’s return of equity (ROE). This, in turn, increases the transparency with which firm-specific performance differs from its peers. Greater transparency would be expected to improve predictive usefulness, but would also place greater pressure on a firm to meet the performance of its peers. In the US, I find that predictive usefulness has generally increased with the shift, indicating that rather than resulting in greater earnings management designed to mask firm-specific differences, the shift resulted in greater transparency of firm-specific accounting information. I also find predictive usefulness has increased in countries that have adopted IFRS, indicating that a further shift toward an asset/liability view to include the greater use of fair values common in IFRS further increased transparency of firm-specific accounting information in adopting countries. This suggests that expanding the use of fair values and/or adopting IFRS in the US may also result in greater reporting transparency. But as the predictive usefulness increases, I find that analysts in the US are not increasing their reliance on firm-specific accounting information, suggesting analysts remain skeptical, even though analysts would likely increase the efficiency in which they form their forecasts by relying more on accounting information.","abstract_html":"Over the past several decades, accounting standard setters have been gradually shifting financial reporting toward an asset/liability view, by rewriting the underlying conceptual framework and issuing accounting standards that reflect this view. The asset/liability view enhances comparability of a firm’s investment base to that of its peers, and thus enhances the comparability of a firm’s return of equity (ROE). This, in turn, increases the transparency with which firm-specific performance differs from its peers. Greater transparency would be expected to improve predictive usefulness, but would also place greater pressure on a firm to meet the performance of its peers. In the US, I find that predictive usefulness has generally increased with the shift, indicating that rather than resulting in greater earnings management designed to mask firm-specific differences, the shift resulted in greater transparency of firm-specific accounting information. I also find predictive usefulness has increased in countries that have adopted IFRS, indicating that a further shift toward an asset/liability view to include the greater use of fair values common in IFRS further increased transparency of firm-specific accounting information in adopting countries. This suggests that expanding the use of fair values and/or adopting IFRS in the US may also result in greater reporting transparency. But as the predictive usefulness increases, I find that analysts in the US are not increasing their reliance on firm-specific accounting information, suggesting analysts remain skeptical, even though analysts would likely increase the efficiency in which they form their forecasts by relying more on accounting information.","abstract_has_math":false,"creators":["Rosa, Regina Cavalier"],"institution":"Accounting","degree_name":"Doctor of Philosophy (PhD)","degree_level":"Dissertation","degree_discipline":"Accounting","degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2014,"date_issued":"2014-01-01T08:00:00Z","date_published":"2014-01-01T08:00:00Z","updated_at":"2026-07-24T02:57:30Z","subjects":["predictive usefulness","international reporting","reporting quality","asset/liability view"],"languages":[],"rights":["unrestricted","Release the entire work immediately for access worldwide."],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["etd-06032014-123906","https://repository.lsu.edu/gradschool_dissertations/315"],"render_values":[{"text":"etd-06032014-123906","href":null,"code":true},{"text":"https://repository.lsu.edu/gradschool_dissertations/315","href":"https://repository.lsu.edu/gradschool_dissertations/315","code":true}]}]},"links":{"outbound_url":"https://doi.org/10.31390/gradschool_dissertations.315","outbound_label":"DOI","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:creator","label":"Author","values":["Rosa, Regina Cavalier"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2014-05-07"]},{"key":"dc:date.available","label":"Dc Date Available","values":["2022-05-12T23:08:24Z"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Accounting"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Doctor of Philosophy (PhD)"]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["Accounting"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["predictive usefulness","international reporting","reporting quality","asset/liability view"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:rights","label":"Dc Rights","values":["unrestricted","Release the entire work immediately for access worldwide."]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["etd-06032014-123906","10.31390/gradschool_dissertations.315","https://repository.lsu.edu/gradschool_dissertations/315"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["Over the past several decades, accounting standard setters have been gradually shifting financial reporting toward an asset/liability view, by rewriting the underlying conceptual framework and issuing accounting standards that reflect this view. The asset/liability view enhances comparability of a firm’s investment base to that of its peers, and thus enhances the comparability of a firm’s return of equity (ROE). This, in turn, increases the transparency with which firm-specific performance differs from its peers. Greater transparency would be expected to improve predictive usefulness, but would also place greater pressure on a firm to meet the performance of its peers. In the US, I find that predictive usefulness has generally increased with the shift, indicating that rather than resulting in greater earnings management designed to mask firm-specific differences, the shift resulted in greater transparency of firm-specific accounting information. I also find predictive usefulness has increased in countries that have adopted IFRS, indicating that a further shift toward an asset/liability view to include the greater use of fair values common in IFRS further increased transparency of firm-specific accounting information in adopting countries. This suggests that expanding the use of fair values and/or adopting IFRS in the US may also result in greater reporting transparency. But as the predictive usefulness increases, I find that analysts in the US are not increasing their reliance on firm-specific accounting information, suggesting analysts remain skeptical, even though analysts would likely increase the efficiency in which they form their forecasts by relying more on accounting information."]},{"key":"dc:title","label":"Title","values":["Has the FASB and IASB's Shift toward an Asset/Liability View Enhanced the Predictive Usefulness of ROE?"]}]}],"canonical_facts":{"dc:creator":["Rosa, Regina Cavalier"],"dc:date":["2014-05-07"],"dc:date.available":["2022-05-12T23:08:24Z"],"dc:description.abstract":["Over the past several decades, accounting standard setters have been gradually shifting financial reporting toward an asset/liability view, by rewriting the underlying conceptual framework and issuing accounting standards that reflect this view. The asset/liability view enhances comparability of a firm’s investment base to that of its peers, and thus enhances the comparability of a firm’s return of equity (ROE). This, in turn, increases the transparency with which firm-specific performance differs from its peers. Greater transparency would be expected to improve predictive usefulness, but would also place greater pressure on a firm to meet the performance of its peers. In the US, I find that predictive usefulness has generally increased with the shift, indicating that rather than resulting in greater earnings management designed to mask firm-specific differences, the shift resulted in greater transparency of firm-specific accounting information. I also find predictive usefulness has increased in countries that have adopted IFRS, indicating that a further shift toward an asset/liability view to include the greater use of fair values common in IFRS further increased transparency of firm-specific accounting information in adopting countries. This suggests that expanding the use of fair values and/or adopting IFRS in the US may also result in greater reporting transparency. But as the predictive usefulness increases, I find that analysts in the US are not increasing their reliance on firm-specific accounting information, suggesting analysts remain skeptical, even though analysts would likely increase the efficiency in which they form their forecasts by relying more on accounting information."],"dc:identifier":["etd-06032014-123906","10.31390/gradschool_dissertations.315","https://repository.lsu.edu/gradschool_dissertations/315"],"dc:rights":["unrestricted","Release the entire work immediately for access worldwide."],"dc:subject":["predictive usefulness","international reporting","reporting quality","asset/liability view"],"dc:title":["Has the FASB and IASB's Shift toward an Asset/Liability View Enhanced the Predictive Usefulness of ROE?"],"thesis:degree_discipline":["Accounting"],"thesis:degree_level":["Dissertation"],"thesis:degree_name":["Doctor of Philosophy (PhD)"],"thesis:institution_name":["Accounting"]},"updated_at":"2026-07-24T02:57:30Z"}