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作者：Abarbanell, J; Lehavy, R
作者单位：University of Michigan System; University of Michigan; University of North Carolina; University of North Carolina Chapel Hill
摘要：The extensive literature that investigates whether analysts' earnings forecasts are biased and/or inefficient has produced conflicting evidence and no definitive answers to either question. This paper shows how two relatively small but statistically influential asymmetries in the tail and the middle of distributions of analysts' forecast errors can exaggerate or obscure evidence consistent with analyst bias and inefficiency, leading to inconsistent inferences. We identify an empirical link bet...
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作者：Trueman, B; Wong, MHF; Zhang, XJ
作者单位：University of California System; University of California Berkeley; University of Chicago
摘要：This paper presents evidence of anomalies in internet firms' stock returns surrounding their quarterly earnings announcements. There is a general runup in prices in the days prior to the earnings announcements, followed by a price reversal lasting for several days. The magnitude of the market-adjusted returns associated with these price movements exceeds I I percent over a 10-day period. We find little evidence to suggest that these returns can be explained either by the earnings news disclose...
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作者：Engel, E; Hayes, RM; Wang, X
作者单位：University of Chicago
摘要：Multiple-performance-measure agency models predict that optimal contracts should place greater reliance on performance measures that are more precise and more sensitive to the agent's effort. We apply these predictions to CEO retention decisions. First, we develop an agency model to motivate proxies for signal and noise in firm-level performance measures. We then document that accounting information appears to receive greater weight in turnover decisions when accounting-based measures are more...
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作者：Cohen, DA; Lys, TZ
作者单位：Northwestern University
摘要：Abarbanell and Lehavy provide evidence that analysts' forecast errors are not normally distributed exhibiting a high occurrence of extreme negative forecast errors (left-tail asymmetry) and a high occurrence of small positive forecast errors (middle asymmetry). This is important for researchers who rely on techniques that are sensitive to the distributional assumptions of analysts' forecast errors. Many of the conclusions drawn by Abarbanell and Lehavy, however, are based on visual impressions...
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作者：Bens, DA; Nagar, V; Skinner, DJ; Wong, MHF
作者单位：University of Michigan System; University of Michigan; University of Chicago
摘要：We investigate whether corporate executives' stock repurchase decisions are affected by their incentives to manage diluted earning per share (EPS). We find that executives increase the level of their firms' stock repurchases when: (1) the dilutive effect of outstanding employee stock options (ESOs) on diluted EPS increases, and (2) earnings are below the level required to achieve the desired rate of EPS growth. We also find that executives' repurchase decisions are not associated with actual E...
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作者：Brickley, JA
作者单位：University of Rochester
摘要：Engel/Hayes/Wang and Farrell/Whidbee provide new evidence on how firms weight alternative performance measures in making CEO retention and replacement decisions. While their results are statistically significant, firm performance continues to explain very little of the variation in CEO turnover. I argue we have probably reached a point of diminishing returns in estimating logit models that focus on the relation between CEO turnover and firm performance measures. We will have to consider other ...
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作者：Holthausen, RW
作者单位：University of Pennsylvania
摘要：Ball, Robin and Wu (Journal of Accounting and Economics, 2003, this issue) investigate the relationship between accounting standards and the structure of other institutions on the attributes of the financial reporting system. They find evidence consistent with the hypothesis that beyond accounting standards, the structure of other institutions, such as incentives of preparers and auditors, enforcement mechanisms and ownership structure affects the outcome of the financial reporting system. How...
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作者：Hirshleifer, D; Teoh, SH
作者单位：University System of Ohio; Ohio State University
摘要：This paper models firms' choices between alternative means of presenting information, and the effects of different presentations on market prices when investors have limited attention and processing power. In a market equilibrium with partially attentive investors, we examine the effects of alternative: levels of discretion in pro forma earnings disclosure, methods of accounting for employee option compensation, and degrees of aggregation in reporting. We derive empirical implications relating...
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作者：Hanlon, M; Rajgopal, S; Shevlin, T
作者单位：University of Washington; University of Washington Seattle; University of Michigan System; University of Michigan
摘要：We estimate the relation between stock option (ESO) grants to the top five executives and future earnings to examine whether incentive alignment or rent extraction by top managers explains option granting behavior. The future operating income associated with a dollar of Black-Scholes value of an ESO grant is $3.71. To understand the source of these positive payoffs, we parse out ESO grant values into components predicted by economic determinants of option grants, governance quality, and a resi...
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作者：Core, JE; Guay, WR; Van Buskirk, A
作者单位：University of Pennsylvania
摘要：We find mixed support for the hypothesis that a New Economy subperiod occurred in the late 1990s in which the relation between equity value-and traditional financial variables differs from previous periods. We examine a regression model of equity value on financial variables over 25 years for a broad firm sample and for firm subsamples thought to be emblematic of the New Economy. We find the regression model's explanatory power declined in the New Economy subperiod for all firm subsamples. How...
