ABSTRACT
The notion of “economic consequences of accounting” that is adopted in this monograph is somewhat broader than that which is the focus of a great deal of contemporary empirical research in accounting, namely, the possible effects of accounting policy changes on stock market prices. Not to put too fine a point on it, all disclosures or decisions that are ordinarily based on ex post or ex ante profit or profitability measures reflecting generally accepted accounting principles (GAAP) are potentially germane to the discussions contained in the chapters which follow.
