-
作者：Segal, Benjamin; Segal, Dan
作者单位：Fordham University; Hebrew University of Jerusalem; Reichman University; Singapore Management University
摘要：Using a comprehensive sample of non-earnings 8-K filings from 2005 to 2013, we examine whether firms strategically report mandatory and voluntary news. In particular, we examine whether firms report negative news when investor attention is low and whether they bundle positive and negative news. Our findings support the notion that managers believe in the existence of investor inattention and strategically report negative news after trading hours. These results particularly apply to public firm...
-
作者：Barth, Mary E.; Clinch, Greg; Israeli, Doron
作者单位：Stanford University; University of Melbourne; Reichman University
摘要：Our model, which is adapted from Feltham and Ohlson (Contemp Account Res 11:689-731, 1995) and Ohlson (Contemp Account Res 11:661-687, 1995) and extends Dechow and Dichev (Account Rev 77:35-59, 2002), characterizes the information about future cash flows reflected in accruals. It reveals investors can extract from accruals information about next period's economic factor and the transitory part of one component of next period's cash flow. The extent to which each accrual provides this informati...
-
作者：Zhang, Ning
作者单位：Queens University - Canada
摘要：I examine the long-term valuation consequence of investment in mergers and acquisitions on acquiring firms through the anticipation effect, in which forward-looking prices embed investors' expectations about the profitability of firms' future acquisitions. Using a sample of firms with past acquisitions, I find that their market valuations depend on both the profitability of their past acquisitions and their current free cash flow. Among firms with positive free cash flow (when future acquisiti...
-
作者：Huang, Qianyun; Skantz, Terrance R.
作者单位：City University of New York (CUNY) System; University of Texas System; University of Texas Arlington
摘要：Using adverse-selection cost as a proxy for information asymmetry, we find evidence that non-GAAP earnings numbers issued by management (pro forma earnings) and analysts (street earnings) improve price discovery. First, information asymmetry before an earnings announcement is positively associated with the probability of a non-GAAP earnings number at the forthcoming earnings announcement. Second, the post-announcement reduction in information asymmetry is greater when managers or analysts issu...
-
作者：Friedman, Henry L.; Heinle, Mirko S.
作者单位：University of California System; University of California Los Angeles; University of Pennsylvania
摘要：Firms often undertake activities that do not necessarily increase cash flows (e.g., costly investments in corporate social responsibility or CSR), and some investors value these non cash activities (i.e., they have a taste for these activities). We develop a model to capture this phenomenon and focus on the asset-pricing implications of differences in investors' tastes for firms' activities and outputs. Our model shows that, first, investor taste differences provide a basis for investor client...
-
作者：Neururer, Thaddeus; Papadakis, George; Riedl, Edward J.
作者单位：Boston University; U.S. Securities & Exchange Commission (SEC)
摘要：This paper investigates alternative models of learning to explain changes in uncertainty surrounding earnings innovations. As a proxy for investor uncertainty, we use model-free implied volatilities; as a proxy for earnings innovations, representing signals of firm performance likely to drive investor perceptions of uncertainty, we use quarterly unexpected earnings benchmarked to the consensus forecast. We document that uncertainty declines on average after the release of quarterly earnings an...
-
作者：Ge, Weili; Tanlu, Lloyd; Zhang, Jenny Li
作者单位：University of Washington; University of Washington Seattle; Northeastern University; University of British Columbia
摘要：In this paper, we examine the consequences of the decision to destagger the election of directors using a sample of firms that switched from a staggered to a destaggered board structure from 2002 through 2010. We find that the likelihood of destaggering increases in shareholder activism, firm size, and poor prior accounting performance. Furthermore, we find that firms that destagger tend to have larger boards and a lower entrenchment index prior to destaggering. We then use our determinants mo...
-
作者：Nezlobin, Alexander; Rajan, Madhav V.; Reichelstein, Stefan
作者单位：University of California System; University of California Berkeley; Stanford University
摘要：We examine the structural properties of a firm's price-to-earnings (P/E) and price-to-book (P/B) ratios and the relation between these two ratios. A benchmark result is obtained under the hypothesis that firms use replacement cost accounting to value their operating assets, so that the P/B ratio coincides with Tobin's q. The firm's P/E ratio can then be expressed as a convex combination of the P/E ratios suggested respectively by the permanent earnings model and the Gordon growth model, with t...
-
作者：Zhu, Wei
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：I investigate the relation between accruals and firm-level price crashes, representing extreme price decreases in weekly returns. I find that high accruals predict a higher price crash probability than low accruals. This finding can be explained by managers' use of income-increasing accrual estimates to hoard bad news. Once accumulated bad news crosses a tipping point, it is released all at once and results in a price crash. Consistent with this explanation, I find the observed relation to be ...
-
作者：Choudhary, Preeti; Koester, Allison; Shevlin, Terry
作者单位：Georgetown University; University of California System; University of California Irvine
摘要：We develop and validate a measure of tax accrual quality. Tax accrual quality captures variation in the extent to which the income tax accrual maps into income tax-related cash flows, with lower variation indicating a higher quality tax accrual. Low tax accrual quality arises from (1) management estimation error and (2) financial reporting standards that lead to differences between income tax expense and income tax cash flows not captured by deferred tax assets and liabilities. We validate our...
