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This study examines whether long-term performance plans and institutional holdings are associated with the level of R&D spending in firms. This paper contributes to the growing literature on the impact of mechanisms to mitigate the short-term focus of managers and investors. This study, unlike prior work, examines two mechanisms simultaneously, longterm performance plans and institutional investor holdings. We find no evidence that the adoption of long-term performance plans has implications for R&D spending. We do find evidence that holdings by institutional investors are positively associated with the level of R&D spending in the firm. These results indicate that the horizon of institutional investors may influence managers' planning horizons and how they decide on long-term investments, but managers' decisions on R&D investments are not afected by the introduction of performance plans. When examining the influence of R&D spending on institutional holdings, the simultaneous equations show that holdings by banks and insurance companies are lower in firms that have higher R&D. In contrast, holdings by "other" institutions are higher in firms that have higher R&D. the workshop participants at the University of Michigan and the National University of Singapore are also much appreciated. Comments from an anonymous reviewer have been helpful in improving this paper. Frederic W. Cook kindly provided survey reports of compensation schemes of the top 200 industrial companies for our sample. We thank Soo Chen Wong and Kok Choy Fong for their research assistance.All errors remain our responsibility. 117 at FRESNO PACIFIC UNIV on December 27, 2014 jaf.sagepub.com Downloaded from 18. Outliers (those with an absolute value for the studentized residual greater than three or Cook's distance measure greater than one) are deleted from the sample. Eight observations are deleted from the sample. When outliers are not removed from the sample, the coefficients on TOTAL, is -0.003 (t statistic = -2.446), BNK (0.332, t statistic = 1.216), INS (-0.282, tstatistic = -1.154), INV (-0.107, t statistic = -1.241), ADV (-0.033, t statistic = -1.197), OTH (-0.235, t statistic = -1.173).19. None of the variables have a variance inflation factor (VIF) greater than 10, which would have indicated multicollinearity. The variable with the highest VIF is lagged R&D (5.48). Mean VIF values considerably larger than one indicate serious multicollinearity problems (Neter, Wasserman, and Kutner [1989]). The mean VIF value is 2.405. We conclude that although there may be a multicollinearity problem, it is not serious.

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This paper examines conservatism and timeliness of earnings in the period surrounding the 1997 Asian financial crisis in Hong Kong, Malaysia, Singapore, and Thailand. Prior research suggests that managers tended to be more aggressive in reporting good news and delayed recognition of bad news during the financial crisis (less conservative and less timely in financial reporting). After the crisis, these four countries implemented corporate governance measures to stabilize their financial systems and improve regulation and supervision (that should improve conservatism and timeliness). We examine and find that conservatism and timeliness of earnings during the crisis period are low, but improved in the post-crisis period. More importantly, conservatism and timeliness in the post-crisis period is even greater than in the pre-crisis period. We measure conservatism using Basu's model and the accumulation of non-operating accruals suggested by Givoly and Hayn. The findings from both measures are consistent with an increase in conservatism after the crisis period. Overall, the results indicate that corporate governance reforms in these four countries had a positive impact on conservatism and timeliness of earnings.

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This paper examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) in Brazil in 2010 has improved the value relevance of accounting information, information content of earnings, financial analyst forecasting activities, and liquidity. We examine the variables in the pre‐IFRS mandatory adoption sample period, considered herein as 2008 to 2009, and the post‐IFRS adoption period of 2011 to 2012. We provide evidence demonstrating improvement in value relevance of earnings and number of analysts following the firms in the period after IFRS adoption, but we do not find improvements in information content of earnings, accuracy in analyst forecasting, and liquidity in the post‐adoption period. Our findings suggest a positive relationship between IFRS adoption and some areas of information quality in Brazil. By focusing on one important economy as it takes significant steps toward full convergence with IFRS, our study contributes to the growing literature concerning the impact of IFRS adoption around the world.