Accounting Standard-Setting Organizations and Earnings Relevance: Longitudinal Evidence From NYSE Common Stocks, 1927-93.

The article provides evidence on the relevance of earnings for valuation of common stocks on the New York Stock Exchange from 1927 to 1993. The article investigates whether earnings relevance is higher following the empowerment of the Committee on Accounting Procedure as the first U.S. accounting standard-setting body in 1939, and subsequent reorganizations of the standard-setting process leading to creation of the Accounting Principles Board in 1959 and the Financial Accounting Standards Board in 1973.