...Lianzan Xu; Francis Cai Purpose This paper aims to examine the concerns that high‐tech “new economy” companies employ aggressive revenue recognition practices to boost stock prices. Design/methodology/approach The authors test empirically the hypothesis that revenue is more value relevant than...

...Lianzan Xu; Francis Cai This paper examines the assertion that the financial market pays fixed PE multiples and that the recognition of goodwill and subsequent amortization depresses earnings and stock prices, putting U.S. firms in a competitive disadvantage in the international merger...