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Bridging the gap between accounting and finance

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  • Pope, Peter F.

Abstract

I suggest that the separation of the academic disciplines of accounting and finance has had some detrimental consequences for the development of research and practice in both disciplines, and especially in finance. I argue that an understanding of financial statement numbers and the accounting principles on which they depend – the accounting microstructure – can be important in developing better valuation and asset pricing models and in identifying relevant dimensions of risk. Therefore finance research can benefit from assimilating recent advances in accounting research. Similarly, accounting research relevant to valuation and asset pricing can benefit by adopting theoretical perspectives and empirical methods from finance research.

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  • Pope, Peter F., 2010. "Bridging the gap between accounting and finance," The British Accounting Review, Elsevier, vol. 42(2), pages 88-102.
    • Handle: RePEc:eee:bracre:v:42:y:2010:i:2:p:88-102
    DOI: 10.1016/j.bar.2010.03.001
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    2. Bauer, Julian & Agarwal, Vineet, 2014. "Are hazard models superior to traditional bankruptcy prediction approaches? A comprehensive test," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 432-442.
    3. Arturo Leccadito & Stefania Veltri, 2015. "A regime switching Ohlson model," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(5), pages 2015-2035, September.
    4. Smith, Julia A. & Cordina, Renzo, 2014. "The role of accounting in high-technology investments," The British Accounting Review, Elsevier, vol. 46(3), pages 309-322.
    5. Macve, R.H., 2015. "Fair value vs conservatism? Aspects of the history of accounting, auditing, business and finance from ancient Mesopotamia to modern China," The British Accounting Review, Elsevier, vol. 47(2), pages 124-141.
    6. Dr. S. Poornima & Theivanayaki M., 2012. "Financial Distress Prediction: Empirical Evidence From Indian Automobile Companies," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 7(1), pages 28-37, April.
    7. Peek, E., 2011. "The Value of Accounting," ERIM Inaugural Address Series Research in Management EIA-2011-048-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam..

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