Charles McClure studies capital markets, governance, and financial reporting. Specifically, his research focuses on how accounting standards affect firm decisions. He also studies the role of board and investor oversight on firm performance.
McClure earned a PhD in Accounting from Stanford Graduate School of Business, an MA in Economics from Duke University, and a BS in Civil Engineering from Cornell University. Prior to his graduate studies, he worked in real estate private equity at LaSalle Investment Management and in the investment banking division of UBS Securities.
Outside of research and teaching, McClure enjoys running, reading, and camping.
REVISION: Evolution in Value Relevance of Accounting Information
We address how value relevance of accounting information evolved as the new economy developed. Prior research concludes accounting information—primarily earnings—has lost relevance. We consider more accounting amounts and find no decline in combined value relevance from 1962 to 2014. We assess evolution in each amount’s value relevance and find increases, most notably for amounts related to intangible assets, growth opportunities, and alternative performance measures, which are important in the new economy. The number of relevant amounts also increases. We also consider separately new economy, non-new economy profit, and non-new economy loss firms. Although the relevance trends are most pronounced for new economy firms, they are economy-wide. We base inferences on a non-parametric approach that automatically incorporates nonlinearities and interactions, thereby unconstraining the valuation relation. Taken together, our findings reveal a more nuanced, but not declining, ...