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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...
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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...
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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：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：Bratten, Brian; Causholli, Monika; Khan, Urooj
作者单位：University of Kentucky; Columbia University
摘要：This paper examines whether fair value adjustments included in other comprehensive income (OCI) predict future bank performance. It also examines whether the reliability of these estimates affects their predictive value. Using a sample of bank holding companies, we find that fair value adjustments included in OCI can predict earnings both 1 and 2 years ahead. However, not all fair value-related unrealized gains and losses included in OCI have similar implications. While net unrealized gains an...
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作者：Johnson, Edward; Johnson, Nicole Bastian; Pfeiffer, Thomas
作者单位：University of Oregon; University of Vienna
摘要：This paper examines a transfer pricing problem between two divisions of a decentralized firm. The selling division is privately informed about its own costs and produces a good that is sold both externally in an intermediate market and internally within the firm. Unlike most previous work, we focus on dual transfer pricing systems that allow the selling division to be credited for an amount that differs from the amount charged to the buying division. We identify conditions under which efficien...
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作者：Konchitchki, Yaniv; Luo, Yan; Ma, Mary L. Z.; Wu, Feng
作者单位：University of California System; University of California Berkeley; Fudan University; York University - Canada; Hong Kong Polytechnic University
摘要：We hypothesize that earnings downside risk, capturing the expectation for future downward operating performance, contains distinct information about firm risk and varies with cost of capital in the cross section of firms. Consistent with the validity of the earnings downside risk measure, we find that, relative to low earnings downside risk firms, high earnings downside risk firms experience more negative operating performance over the subsequent period, are more sensitive to downward macroeco...
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作者：Baginski, Stephen; Demers, Elizabeth; Wang, Chong; Yu, Julia
作者单位：University System of Georgia; University of Georgia; University of Virginia; United States Department of Defense; United States Navy; Naval Postgraduate School; Nanyang Technological University
摘要：Research documents that linguistic tone is incrementally informative about stock returns. What remains a puzzle is the mechanism by which investors can assess its credibility. We examine whether contemporaneous information in management earnings forecasts serves as a timely alternative to ex post verification. We document that ex post verifiable quantitative news in unbundled forecasts, and characteristics of the linguistic tone itself, affect investors' pricing of tone. Consistent with higher...
