-
作者：Hui, Kai Wai; Yeung, P. Eric
作者单位：Hong Kong University of Science & Technology; Cornell University
摘要：We test whether the post-forecast revision drift is mainly attributable to investors' underreaction to industry-wide earnings news conveyed by analysts' forecast revisions. We find a large drift associated with industry-wide earnings news but no drift associated with firm-specific earnings news. Consistent with the functional fixation hypothesis, we provide evidence that the post-forecast revision drift is driven by investors' underreaction to the higher persistence of industry-wide earnings. ...
-
作者：Ball, Ray; Kothari, S. P.; Nikolaev, Valeri V.
作者单位：University of Chicago; Massachusetts Institute of Technology (MIT)
摘要：A substantial literature investigates conditional conservatism, defined as asymmetric accounting recognition of economic shocks (news), and how it depends on various market, political, and institutional variables. Studies typically assume the Basu [1997] asymmetric timeliness coefficient (the incremental slope on negative returns in a piecewise-linear regression of accounting income on stock returns) is a valid conditional conservatism measure. We analyze the measure's validity, in the context...
-
作者：Qu, Hong
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：In many scenarios such as banking and liquidity crises, inefficiencies often arise because investors face uncertainties about economic fundamentals and the strategies of other investors. How information affects fundamental uncertainty is well studied, but how information affects strategic uncertainty is underexplored. This paper examines how two communication mechanisms, market and cheap talk, affect investment decisions and efficiency in an experimental investment game with both fundamental a...
-
作者：Knechel, W. Robert; Niemi, Lasse; Zerni, Mikko
作者单位：State University System of Florida; University of Florida; Aalto University; University of Vaasa
摘要：This study investigates the implicit financial incentives of individual Big 4 audit partners by examining the association between a partner's compensation and characteristics of the audit firm, audit partner, and individual partner clientele for Big 4 firms in Sweden. Using tax and financial data for individual audit partners and clients, our empirical findings indicate that there is significant variation in the implicit determinants that are associated with compensation across the Big 4. We f...
-
作者：Kama, Itay; Weiss, Dan
作者单位：Tel Aviv University
摘要：This study explores motivations underlying managers resource adjustments. We focus on the impact of incentives to meet earnings targets on resource adjustments and the ensuing cost structures. We find that, when managers face incentives to avoid losses or earnings decreases, or to meet financial analysts earnings forecasts, they expedite downward adjustment of slack resources for sales decreases. These deliberate decisions lessen the degree of cost stickiness rather than induce cost stickiness...
-
作者：Shroff, Nemit; Sun, Amy X.; White, Hal D.; Zhang, Weining
作者单位：Massachusetts Institute of Technology (MIT); University of Houston System; University of Houston; University of Michigan System; University of Michigan
摘要：In 2005, the Securities and Exchange Commission enacted the Securities Offering Reform (Reform), which relaxes gun-jumping restrictions, thereby allowing firms to more freely disclose information before equity offerings. We examine the effect of the Reform on voluntary disclosure behavior before equity offerings and the associated economic consequences. We find that firms provide significantly more preoffering disclosures after the Reform. Further, we find that these preoffering disclosures ar...
-
作者：Ogneva, Maria
作者单位：University of Southern California
-
作者：Ball, Ryan T.; Easton, Peter
作者单位：University of Michigan System; University of Michigan; University of Notre Dame
摘要：We dissect the portion of stock price change of the fiscal year that is recognized in reported accounting earnings of the year. We call this portion earnings recognition timeliness (ERT). The emphasis in our dissection is on empirical identification of two fundamental precepts of financial accounting: (1) the matching principle, which is manifested in the recognition of expenses in the same period as the related benefits (i.e., sales revenue) accrue; and (2) recognition of expenses in the curr...
-
作者：Williams, Jared
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：Social psychologists have documented a tendency for people to overestimate their similarity to others. I investigate whether financial analysts' forecast errors are consistent with this bias. I model the bias by assuming analysts overestimate the correlation of the private signals they receive about a firm's future earnings. Mymodel predicts a positive relationship between (i) the likelihood of an analyst's revised forecast being too close to his earlier forecast and (ii) the number of analyst...
-
作者：Ball, Ryan T.
作者单位：University of Michigan System; University of Michigan
摘要：This paper theoretically and empirically investigates how the risk of future adverse price changes created by the anticipated arrival of information influences risk-averse investors trading decisions in institutionally imperfect capital markets. Specifically, I examine how the selling activity of individual investors immediately following an earnings announcement is influenced by the tradeoff between risk-sharing benefits of immediate trade and explicit transaction costs imposed on such trades...
