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作者：Green, Jeremiah; Hand, John R. M.; Zhang, X. Frank
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of North Carolina; University of North Carolina Chapel Hill; Yale University
摘要：We investigate the number of and reasons for errors and questionable judgments that sell-side equity analysts make in constructing and executing discounted cash flow (DCF) equity valuation models. For a sample of 120 DCF models detailed in reports issued by U.S. brokers in 2012 and 2013, we estimate that analysts make a median of three theory-related and/or execution errors and four questionable economic judgments per DCF. Recalculating analysts' DCFs after correcting for major errors changes ...
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作者：Bernardo, Antonio E.; Cai, Hongbin; Luo, Jiang
作者单位：University of California System; University of California Los Angeles; Peking University; Nanyang Technological University
摘要：We develop a theory of stock-price-based incentives even when the stock price does not contain information unknown to the firm. In our model, a manager must search for and decide on new investment projects when the market may have a difference of opinion about the quality of the firm's investment opportunities. The firm optimally provides incentives based solely on realized earnings, leading to an efficient investment policy, when the market has congruent or pessimistic beliefs; however, the f...
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作者：Friedman, Henry L.; Hughes, John S.; Saouma, Richard
作者单位：University of California System; University of California Los Angeles; Utah System of Higher Education; University of Utah
摘要：We examine the effects of biased (conservative or liberal) reporting on product market competition. Cournot duopolists observe either firm-specific or industry-wide shocks and provide noisy reports subject to an exogenous mandated bias attributed to public policy. Given neutral prior beliefs, either a conservative bias or a liberal bias enhances overall reporting-system informativeness as measured by the reduction of uncertainty. Consistent with previously established effects in the informatio...
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作者：Bach, Christian; Christensen, Peter O.
作者单位：Copenhagen Business School
摘要：Using a CCAPM-based risk-adjustment model, we perform yearly valuations of a large sample of stocks listed on NYSE, AMEX, and NASDAQ over a 30-year period. The model differs from standard valuation models in the sense that it adjusts forecasted residual income for risk in the numerator rather than through a risk-adjusted cost of equity in the denominator. The risk adjustments are derived based on assumptions about the time-series properties of residual income returns and aggregate consumption ...
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作者：Hope, Ole-Kristian; Hu, Danqi; Lu, Hai
作者单位：University of Toronto; BI Norwegian Business School; Northwestern University
摘要：Practitioners have long criticized risk-factor disclosures in the 10-K as generic and boilerplate. In response, regulators emphasize the importance of being specific. By using a computing algorithm, this paper establishes a new measure (Specificity) to quantify the level of specificity of firms' qualitative risk-factor disclosures. We first examine determinants of variations in Specificity, and document that firms with high proprietary costs provide less specific risk-factor disclosures. More ...
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作者：Miao, Bin; Teoh, Siew Hong; Zhu, Zinan
作者单位：National University of Singapore; University of California System; University of California Irvine
摘要：We test for the effect of limited attention on the valuation of accruals by comparing the immediate and long-term market reactions to earnings announcements between a subsample of firms that disclose only the balance sheet with a subsample of firms that disclose both the balance sheet and the statement of cash flows (SCF) in the earnings press release. Information about accruals generally can be inferred from comparative balance sheets, but the availability of the SCF makes accruals more salie...
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作者：Chen, Shuping; Thomas, Jake; Zhang, Frank
作者单位：University of Texas System; University of Texas Austin; Yale University
摘要：We find evidence that performance-reflected in earnings and cash flows-is transferred from targets to acquirers around acquisitions. Using a sample of 2128 completed deals from 1985 to 2010, our results suggest that targets depress performance when investor attention declines once the deal parameters are set, and much of that performance understatement is transferred to boost post-acquisition acquirer performance. Evidence of variation across subsamples provides additional confirmation: transf...
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作者：Jiang, Danling; Kumar, Alok; Law, Kelvin K. F.
作者单位：State University System of Florida; Florida State University; University of Miami; Tilburg University
摘要：We show that the personal traits of analysts, as revealed by their political donations, influence their forecasting behavior and stock prices. Analysts who contribute primarily to the Republican Party adopt a more conservative forecasting style. Their earnings forecast revisions are less likely to deviate from the forecasts of other analysts and are less likely to be bold. Their stock recommendations also contain more modest upgrades and downgrades. Overall, these analysts produce better quali...
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作者：Lewellen, Jonathan; Resutek, Robert J.
作者单位：Dartmouth College; University System of Georgia; University of Georgia
摘要：We test whether investment explains the accrual anomaly by splitting total accruals into investment-related and nontransaction accruals, items such as depreciation and asset write-downs that do not represent new investment expenditures. The two types of accruals have very different predictive power for firm performance, not just for future earnings but also for future cash flow and stock returns. Most importantly, nontransaction accruals have the strongest negative predictive slopes for earnin...
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作者：Bissessur, Sanjay W.; Veenman, David
作者单位：University of Amsterdam
摘要：This study proposes and tests an alternative to the extant earnings management explanation for zero and small positive earnings surprises (i.e., analyst forecast errors). We argue that analysts' ability to strategically induce slight pessimism in earnings forecasts varies with the precision of their information. Accordingly, we predict that the probability that a firm reports a small positive instead of a small negative earnings surprise is negatively related to earnings forecast uncertainty, ...
