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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...
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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...
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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...
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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 ...
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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：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：Baik, Bok; Kim, Kyonghee; Morton, Richard; Roh, Yongoh
作者单位：Seoul National University (SNU); University of Missouri System; University of Missouri Columbia; State University System of Florida; Florida State University
摘要：This paper examines whether analysts' pre-tax income forecasts mitigate the tax expense anomaly documented by Thomas and Zhang (J Account Res 49:791-821, 2011). They find that seasonal changes in quarterly income tax expense are positively related to future returns after controlling for the earnings surprise and conclude that investors underreact to value-relevant information in tax expense. When analysts issue both earnings and pre-tax income forecasts, they implicitly provide a forecast of i...
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作者：Cao, Jian; Chen, Feng; Higgs, Julia L.
作者单位：State University System of Florida; Florida Atlantic University; University of Missouri System; University of Missouri Columbia
摘要：Delays in financial reports often reflect issues related to period-end accounting and audit processes. We investigate the impact of filing delays in connection with auditor characteristics on the quality of financial statements in a sample of firms that filed Form 10-K after the statutory due date. We find that late filing firms are associated with lower financial reporting quality compared to timely filing firms matched by propensity scores, where financial reporting quality is measured by th...
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作者：Powers, Kathleen; Robinson, John R.; Stomberg, Bridget
作者单位：University of Tennessee System; University of Tennessee Knoxville; Texas A&M University System; Texas A&M University College Station; Mays Business School; University System of Georgia; University of Georgia
摘要：We examine how different accounting metrics used to evaluate CEO performance for annual bonuses affect the level of corporate tax planning as well as financial reporting for income taxes. We predict and find that firms using cash flow metrics report lower GAAP and cash effective tax rates (ETR) than firms using earnings metrics. We also find that firms using after-tax earnings metrics report lower GAAP ETRs but similar cash ETRs as firms using pre-tax earnings metrics. Further analyses show th...
