Kjell Henry Knivsflå

Kjell Henry Knivsflå
NHH Norwegian School of Economics | NHH · Accounting, Auditing and Law

Professor

About

24
Publications
2,122
Reads
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372
Citations
Introduction
I am interested in financial accounting and valuation in general and research in these fields in particular. I have done mostly archival research and some attempts to contribute theoretically. Currently, I work on the association between analytical skills and the ability to generate abnormal returns, and the relationship between competitive advantage and valuation.

Publications

Publications (24)
Article
This study examines the interaction of audit firm characteristics with two core earnings management tools: classification shifting (CS) and core accruals management (CACM). CS occurs when management intentionally misclassifies recurring operational expenses as special items to inflate perceptions of core earnings. A Norwegian sample of companies, w...
Article
We investigate how audit firm size and large auditor-provided non-audit services (NAS) affect accruals quality around large equity issues and acquisitions for Norwegian public companies from 1999 to 2013. We find poorer accruals quality around large equity increases. Big 4 audit firms mitigate adverse accruals quality but only if the provision of N...
Article
Purpose – The purpose of this paper is to examine how the mandatory shift from Norwegian Generally Accepted Accounting Principles (NGAAP) to International Financial Reporting Standards (IFRS) in Norway affected the valuation weights of earnings and book values, with the aim of gaining insights that are relevant for standard setters, investors and o...
Article
Firms listed on European, Australian and an increasing number of other stock exchanges around the world are required to report according to International Financial Reporting Standards (IFRS). We use a Norwegian sample to examine whether the adoption of IFRS in 2005 has changed the value relevance of earnings relative to book values. IFRS are balanc...
Article
We investigate the effects of audit firm size and non-audit services (NAS) on earnings management (high abnormal accruals) around large equity issues and acquisitions in Norway 2001-2010. We find that large audit firms moderate earnings management, but provision of large NAS reverses the moderating effect. In contrast, smaller audit firms become be...
Article
In 2003, the Financial Supervisory Authority of Norway (FSA) disclosed that audit firms had violated the legal restrictions for providing nonaudit services (NAS). In response, the FSA tightened the NAS regulations. This study examines how regulatory oversight affects the relation between the provision of NAS and earnings response coefficients (ERC)...
Article
We test the value relevance of financial reporting in Norway over the 40 years before IFRS were introduced. An improved association between financial reporting and value creation enhances decision-making and control. We find that the time trend of overall value relevance has increased significantly after controlling for changes in economic value re...
Article
Summary We test the value relevance of financial reporting in Norway over the 40 years before IFRS were introduced. An improved association between financial reporting and value creation enhances decision-making and control. We find that the time trend of overall value relevance has increased significantly after controlling for changes in economic...
Article
This article analyzes the value-relevance of industry-based and resource-based competitive advantage in a large sample of firms listed on the Oslo Stock Exchange. We measure competitive advantage by a single variable and perform a new decomposition into its underlying sources. In 1986-2005, the industry-based and the resource-based competitive adva...
Article
This study examines investors' perceptions about audit quality in the post-Enron years 2003-2006 in an environment characterized by low-litigation risk (Norway). Overall, we find that annual stock market returns are less responsive to reported earnings when auditors' provision of non-audit services (NAS) to the reporting firms is relatively high. T...
Article
This article analyzes the value-relevance of industry-based and resource-based competitive advantage in a large sample of firms listed on the Oslo Stock Exchange. We measure competitive advantage by a single variable and perform a new decomposition into its underlying sources. In 1986-2005, the industry-based and the resource-based competitive adva...
Article
Firms listed on stock exchanges within the European Economic Area are required to report consolidated financial statements according to International Financial Reporting Standards (IFRS) since 2005. The firms that adopted IFRS in 2005 were also required to restate their 2004 financial statements from national GAAP to provide comparable accounting f...
Article
Full-text available
La mise en place d'un nouveau r�f�rentiel comptable IFRS a induit une nouvelle philosophie d'estimation et de valorisation de la performance des entreprises sur les march�s europ�ens, notre objectif est de mesurer l'impact et le degr� de la pertinence informationnelle additionnelle d� � l'adoption des IFRS en 2005. Les r�sultats des tests empirique...
Article
Full-text available
The relationship between the stock market and investment is ana-lyzed by utilizing a multivariate vector autoregressive model, which also in-cludes fundamentals represented by production and the bank interest rate. Two important results appear on the basis of data from the small, open economy of Norway. The ®nancial market has no lead e¨ect on real...
Article
This article is concerned with the dissemination process of firm-specific annual earnings information in the Norwegian capital market. We find a significant reduction in stock price volatility in the post-announcement period relative to the pre-announcement period for companies traded on the Oslo Stock Exchange in the period 1990–1995. Potential ex...
Article
We show that if taxable income were linked to accounting income, there will exist an automatic safeguard against manipulation of earnings within the analysed framework. Separating taxable income from accounting income will remove this self-controlled mechanism, and accordingly create a need for separate countermeasures to prevent earnings manipulat...
Article
Improved accounting for intangible assets is one of the major challenges to future financial reporting. Conventionally, resources spent on intangibles such as knowledge, design, licenses, and trademarks have been expensed and hence treated merely as costs and not as investments with book values. Such an arbitrary way of dealing with intangible reso...

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