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作者：Peng, Lin; Teoh, Siew Hong; Wang, Yakun; Yan, Jiawen
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); University of Cambridge; University of Cambridge; University of California System; University of California Los Angeles; The Chinese University of Hong Kong, Shenzhen; Cornell University
摘要：Using machine learning-based algorithms, we measure key impressions about sell-side analysts using their LinkedIn photos. We find that impressions of analysts' trustworthiness (TRUST) and dominance (DOM) are positively associated with forecast accuracy, especially after recent in-person meetings between analysts and firm managers. High TRUST also enhances stock return sensitivity to forecast revisions, especially for stocks with high institutional ownership. In contrast, the impression of anal...
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作者：Barrios, John M.; Bianchi, Pietro A.; Isidro, Helena; Nanda, Dhananjay
作者单位：Washington University (WUSTL); National Bureau of Economic Research; State University System of Florida; Florida International University; Instituto Universitario de Lisboa; University of Miami
摘要：We examine how similarity in institutional, legal, and social characteristics between a firm's and its directors' home countries, that is, country-pair homophily, affects foreign director appointments. We estimate a gravity model that includes economic and geographic proximity and find that country-pair homophily is a significant determinant of foreign director appointments to corporate boards. We also find that country-pair homophily limits the appointments of foreign directors from high-qual...
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作者：Li, Bin; Venkatachalam, Mohan
作者单位：University of Houston System; University of Houston; Duke University
摘要：Could real-time big data help unravel material firm events? How would it compare with firm disclosure and traditional media in terms of timeliness and completeness? Could big data provide incremental value-relevant information for investors? With these questions in mind, we use a novel data set of cell phone pings (i.e., geolocation signals from mobile devices) to track production disruptions (outages)--material events for U.S. oil refineries. We first validate the construct by examining the e...
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作者：Chen, Xi; Cho, Yang Ha (Tony); Dou, Yiwei; Lev, Baruch
作者单位：New York University; New York University
摘要：We use machine learning methods and high-dimensional detailed financial data to predict the direction of one-year-ahead earnings changes. Our models show significant out-of-sample predictive power: the area under the receiver operating characteristics curve ranges from 67.52% to 68.66%, significantly higher than the 50% of a random guess. The annual size-adjusted returns to hedge portfolios formed based on the prediction of our models range from 5.02% to 9.74%. Our models outperform two conven...
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作者：Binz, Oliver; Graham, John R.
作者单位：INSEAD Business School; Duke University; National Bureau of Economic Research
摘要：We examine whether the Securities Exchange Act of 1934 increased the information content of corporate earnings disclosures. Prior research questions whether the Act improved disclosure quality but generally relies on long-window tests and yields mixed results. We focus on whether the Act increased earnings informativeness, improving upon prior designs by focusing on short earnings announcement windows and employing a difference-in-differences design to control for potential contemporaneous str...
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作者：Feichter, Christoph; Moers, Frank; Timmermans, Oscar
作者单位：Vienna University of Economics & Business; Maastricht University; University of London; London School Economics & Political Science
摘要：We examine the relation between incentive plans based on relative performance and competitive aggressiveness. Using data on executive incentive-compensation contracts in large U.S. firms, we find a positive association between competitive aggressiveness and peer group overlap-that is, the extent to which two firms select each other as peers in these incentive plans. Our findings indicate that managers of such firms take more frequent as well as more complex competitive actions, relative to man...
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作者：Lu, Jinzhi
作者单位：City University of Hong Kong
摘要：I develop a theory to study the consequences of providing more detailed information to rationally inattentive investors. I first consider a simple data-provision problem and show that adding more data or detail in financial statements can make it more difficult for investors to extract information. Consequently, investors who have limited information-processing capacity may prefer less detailed information. I also show that when investors' decisions are complements, providing details in additi...
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作者：Chen, Bingyi; Conaway, Jenelle K.
作者单位：Suffolk University; George Mason University
摘要：We examine whether investors consider foreign component auditors when assessing the value of U.S. multinational corporations (MNCs) using two sets of Public Company Accounting Oversight Board (PCAOB) international regulatory events. We find investors react negatively when the PCAOB is denied access to inspect foreign component auditors in jurisdictions where a U.S. MNC has significant operations and positively when those countries later allow inspection. For foreign component auditors that are...
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作者：Bochkay, Khrystyna; Markov, Stan; Subasi, Musa; Weisbrod, Eric
作者单位：University of Miami; University of Texas System; University of Texas Dallas; University System of Maryland; University of Maryland College Park; University of Kansas
摘要：In September 2009, Thomson Reuters (TR) discontinued its practice of relying on analysts to determine the treatment of unexpected charges and gains in favor of their immediate exclusion from GAAP earnings. Adopting a difference-in-differences approach, we show that this plausibly exogenous change in TR's methodology resulted in street earnings that are more predictive of future performance; and timelier, more accurate, and less dispersed analyst forecasts of future earnings, consistent with TR...
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作者：Allen, Abigail; Lewis-Western, Melissa F.; Valentine, Kristen
作者单位：Brigham Young University; University System of Georgia; University of Georgia
摘要：Firm life-cycle stage reflects a firm's current strategic direction toward exploration independent of age or size. We provide evidence that young life-cycle firms are particularly vulnerable to negative innovation consequences from financial regulation but do not appear to experience any compensating financial reporting quality (FRQ) benefits. Using a generalized difference-in-differences design around Sarbanes Oxley Act of 2002 (SOX), we document a significant reduction in both research and d...
