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作者：Keung, Edmund; Lin, Zhi-Xing; Shih, Michael
作者单位：National University of Singapore
摘要：This study shows that firms collectively incur a cost for managing earnings and analyst expectations to meet earnings forecasts. We compare the coefficient in the regression of abnormal stock returns on earnings surprise (the earnings response coefficient [ERC]) across ranges of earnings surprises. The ERC for earnings surprises in the range [0, 1(sic)] is significantly lower than ERCs for earnings surprises in adjacent ranges for firm-quarters in the early and mid 2000s, but not for those in ...
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作者：Nikolaev, Valeri V.
作者单位：University of Chicago
摘要：Using a sample of over 5,000 debt issues, I test whether firms with more extensive use of covenants in their public debt contracts exhibit timelier recognition of economic losses in accounting earnings. Covenants govern the transfer of decision-making and control rights from shareholders to bondholders when a company approaches financial distress and thereby limit managers' abilities to expropriate bondholder wealth. Covenants are expected to constrain managerial opportunism, however, only if ...
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作者：Han, Jun; Tan, Hun-Tong
作者单位：University of Hong Kong; Nanyang Technological University
摘要：We report the results of an experiment that shows that investors' earnings- and investment-related judgments are jointly influenced by their investment position ( long versus short), the news valence of guidance issued by management, and the amount of ambiguity in the guidance. Prior research indicates that guidance form ( point versus range) has no effect on investors' earnings estimates made in reaction to management guidance. We extend this research by showing that guidance form matters, co...
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作者：Wu, Jin (Ginger); Zhang, Lu; Zhang, X. Frank
作者单位：University System of Georgia; University of Georgia; Yale University; University of Michigan System; University of Michigan; National Bureau of Economic Research
摘要：Interpreting accruals as working capital investment, we hypothesize based on q-theory that firms optimally adjust their accruals in response to discount rate changes. A higher discount rate means less profitable investments and lower accruals, and a lower discount rate means more profitable investments and higher accruals. Our evidence supports this optimal investment hypothesis: (1) adding an investment factor into standard factor regressions substantially reduces the magnitude of the accrual...
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作者：Grace, Martin F.; Leverty, J. Tyler
作者单位：University System of Georgia; Georgia State University; University of Iowa
摘要：This paper examines the effect of rate regulation on the management of the property-liability insurer loss reserve. The political cost hypothesis predicts that managers make accounting choices to reduce wealth transfers resulting from the regulatory process. Managers may under-state reserves to justify lower rates to regulators. Alternatively, managers may have an incentive to report loss inflating discretionary reserves to reduce the cost of regulatory rate suppression. We find insurers over-...
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作者：Bushee, Brian J.; Core, John E.; Guay, Wayne; Hamm, Sophia J. W.
作者单位：University of Pennsylvania
摘要：This paper investigates whether the business press serves as an information intermediary. The press potentially shapes firms' information environments by packaging and disseminating information, as well as by creating new information through journalism activities. We find that greater press coverage reduces information asymmetry (i.e., lower spreads and greater depth) around earnings announcements, with broad dissemination of information having a bigger impact than the quantity or quality of p...
