tailieunhanh - JOINT VENTURE: FUNDAMENTALS OF ACCOUNTING

Without descriptive theories to interpret the empirical associations, the value-relevance literature’s associations have limited implications or inferences for standard setting; they are just associations. For example, consider standard-setting inferences based on a theory that assumes standard setters consider a ‘‘high’’ association with stock values a ‘‘desirable’’ attribute for accounting earnings. Those inferences are not likely to be useful if the evidence suggests standard setters do not consider stock value association an important Simple assertions by authors that standard setters should consider that attribute desirable are not sufficient for scientific research. Those authors have to specify the objective of standard setting and how using the association criterion helps standard setters.

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