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作者：Taffler, RJ; Lu, J; Kausar, A
作者单位：Cranfield University
摘要：We investigate the stock price reaction to UK going-concern audit report disclosures in the calendar year subsequent to publication. Over this period our firm population underperforms by between 24% and 31% depending on the benchmark adopted. This market underreaction to such an unambiguous bad news release is not a post-earnings announcement drift phenomenon; it is also robust to other potentially confounding explanations. However, whatever the reasons for such stock mispricing, we find costl...
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作者：Daniel, K
作者单位：Northwestern University
摘要：Chan, Frankel, and Kothari (CFK) present new empirical evidence which they argue rules out a broad class of behavioral models as potentials explanations of long-horizon return predictability. I provide a different interpretation of their findings. The CFK evidence and other extant empirical evidence is inconsistent with investor misinterpretation of earnings information as a source a long-horizon predictability, as CFK claim. However, this evidence points to misinterpretation of non-accounting...
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作者：Gu, ZY; Chen, T
作者单位：Carnegie Mellon University
摘要：Given the recent controversy over deviations of street earnings from GAAP earnings, we show that the nonrecurring items that analysts include in street earnings are more persistent and have higher valuation multiples than those items they exclude from street earnings. in addition, we find no evidence that the pricing differential between the included and excluded items leads to future abnormal returns. If, as analysts claim, the primary use of street earnings is to value a stock, then our resu...
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作者：Basu, S; Markov, S
作者单位：Emory University
摘要：Prior research concludes that financial analysts do not process public information efficiently in generating their earnings forecasts. The ordinary least squares (OLS) regression-based tests used in prior studies assume implicitly that analysts face a quadratic loss function. In contrast, we argue that analysts likely face a linear loss function, and hence, try to minimize their absolute forecast errors. We conduct and compare rational expectations tests using these two alternative loss functi...
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作者：Leftwich, R
作者单位：University of Chicago
摘要：Barton and Waymire (J. Account. Fcon. (this issue)) investigate voluntary accounting disclosure practices in the 1920s. They conclude that managers' incentives explain, in part, cross-sectional reporting differences. Moreover, the authors conclude that firms with higher quality financial reporting experienced substantially lower price declines when stock prices dropped so dramatically in October 1929. Their first finding seems incontrovertible, albeit less surprising. Their second finding is m...
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作者：Chan, WS; Frankel, R; Kothari, SP
作者单位：Massachusetts Institute of Technology (MIT)
摘要：Assessing the predictive ability of behavioral finance theories using out-of-sample data is important. Otherwise, the potentially boundless set of psychological biases underlying the behavioral explanations for security price behavior can lead to overfitting of theories to data. We test pricing effects attributed to two psychological biases, representativeness and conservatism, which underlie many behavioral finance theories. Using trends and consistency of accounting performance, we look for ...
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作者：Barton, J; Waymire, G
作者单位：Emory University
摘要：We examine whether availability of higher quality financial information lessens investor losses during a period seen as a stock market crash. We focus on October 1929, which partly motivated sweeping financial reporting regulations in the 1930s. Using a sample of 540 common stocks traded on the New York Stock Exchange during October 1929, we find that the quality of firms' financial reporting increases with managers' incentives to supply higher quality financial information demanded by investo...
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作者：Arya, A; Mittendorf, B
作者单位：University System of Ohio; Ohio State University; Yale University
摘要：Fischer and Verrecchia (J. Account. Econom. (2004), forthcoming) studies a model of imperfect competition in which firms' disclosures are affected by biased information processing. They find that optimism can add punch to a firm's actions. When facing an optimist, a rival is forced to soften its competitive posture, thereby rendering such biases viable. Although the setting provides a cogent explanation for disclosure bias, its reliance on imperfect information processing introduces some quest...
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作者：Hirshleifer, D; Hou, KW; Teoh, SH; Zhang, YL
作者单位：University System of Ohio; Ohio State University
摘要：When cumulative net operating income (accounting value-added) outstrips cumulative free cash flow (cash value-added), subsequent earnings growth is weak. If investors with limited attention focus on accounting profitability, and neglect information about cash profitability, then net operating assets, the cumulative difference between operating income and free cash flow, measures the extent to which reporting outcomes provoke over-optimism. During the 1964-2002 sample period, net operating asse...
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作者：Fischer, PE; Verrecchia, RE
作者单位：University of Pennsylvania; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：We suggest that transparent bias in management disclosures may result from managers processing information in a heuristic, as distinct from Bayesian, fashion when they face imperfect or head-to-head competition. We predict that transparent bias in disclosures is positively related to the extent of head-to-head competition. In addition, when disclosure is discretionary, we show that managers who exhibit viable, heuristic behavior are less likely to disclose than managers who exhibit Bayesian be...
