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作者：Sprinkle, Geoffrey B.
作者单位：Indiana University System; Indiana University Bloomington
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作者：Bergman, Nittai K.; Roychowdhury, Sugata
作者单位：Massachusetts Institute of Technology (MIT)
摘要：This paper investigates how firms react strategically to investor sentiment via their disclosure policies in an attempt to influence the sentiment-induced biases in expectations. Proxying for sentiment using the Michigan Consumer Confidence Index, we show that during low-sentiment periods, managers increase forecasts to walk up current estimates of future earnings over long horizons. In contrast, during periods of high sentiment, managers reduce their long-horizon forecasting activity. Further...
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作者：Jayaraman, Sudarshan
作者单位：Washington University (WUSTL)
摘要：I examine whether earnings that are smoother or more volatile than cash flows provide or garble information. Consistent with theories that predict more informed trading when public information is less informative, I find that bid-ask spreads and the probability of informed trading are higher both when earnings are smoother than cash flows and also when earnings are more volatile than cash flows. Additional tests suggest that managers' discretionary choices that lead to smoother or more volatil...
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作者：Plantin, Guillaume; Sapra, Haresh; Shin, Hyun Song
作者单位：University of London; London Business School; University of Chicago; Princeton University
摘要：Financial institutions have been at the forefront of the debate on the controversial shift in international standards from historical cost accounting to mark-to-market accounting. We show that the trade-offs at stake in this debate are far from one-sided. While the historical cost regime leads to some inefficiencies, marking-to-market may lead to other types of inefficiencies by injecting artificial risk that degrades the information value of prices, and induces suboptimal real decisions. We c...
