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作者：Penman, Stephen; Reggiani, Francesco
作者单位：Columbia University; Bocconi University
摘要：Historical cost accounting deals with uncertainty by deferring the recognition of earnings until the uncertainty has largely been resolved. Such accounting affects both earnings and book value and produces expected earnings growth deemed to be at risk. This paper shows that the earnings-to-price and book-to-price ratios that are the product of this accounting forecast both earnings growth and the risk to that growth. The paper also shows that the market pricing of earnings and book values in t...
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作者：Cheynel, Edwige
作者单位：Columbia University
摘要：This paper explores the links between firms' voluntary disclosures and their cost of capital. Existing studies investigate the relation between mandatory disclosures and cost of capital and find no cross-sectional effect but a negative association in time-series. In this paper, I find that when disclosure is voluntary firms that disclose their information have a lower cost of capital than firms that do not disclose, but the association between voluntary disclosure and cost of capital for discl...
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作者：Lyle, Matthew R.; Callen, Jeffrey L.; Elliott, Robert J.
作者单位：University of Toronto; Northwestern University; University of Adelaide; University of South Australia
摘要：This study extends the accounting-based valuation framework of Ohlson (Contemp Acc Res 11(2):661-687, 1995) and Feltham and Ohlson (Acc Rev 74(2):165-183, 1999) to incorporate dynamic expectations about the level of systematic risk in the economy. Our model explains recent empirical findings documenting a strong negative association between changes in economy-wide risk and future stock returns. Importantly, the model also generates costs of capital that are solely a linear function of accounti...
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作者：Raman, Kartik; Shivakumar, Lakshmanan; Tamayo, Ane
作者单位：Bentley University; University of London; London Business School; University of London; London School Economics & Political Science
摘要：This study examines how takeover decisions are influenced by the quality of information in target firms' earnings. We show that bidders prefer negotiated takeovers in deals involving targets with poor earnings quality. Moreover, earnings quality and takeover premiums are negatively related in negotiated takeovers, suggesting that bidders obtain valuable private information through negotiations. We also find that bidders share information risk with target shareholders by paying with more equity...
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作者：Cadman, Brian D.; Rusticus, Tjomme O.; Sunder, Jayanthi
作者单位：Utah System of Higher Education; University of Utah; Northwestern University; University of Arizona
摘要：Option grant vesting terms are a contractual provision that is shaped by accounting standards and other economic factors. We examine the effect of accounting standards, specifically SFAS 123(R), on the vesting terms of stock option grants while also modeling other economic determinants of this contract feature. We document significant variation in stock option grant vesting periods and patterns suggesting that firms actively choose vesting terms. Consistent with financial reporting incentives ...
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作者：Kravet, Todd; Muslu, Volkan
作者单位：University of Texas System; University of Texas Dallas; University of Houston System; University of Houston
摘要：We examine the association between changes in companies' textual risk disclosures in 10-K filings and changes in stock market and analyst activity around the filings. We find that annual increases in risk disclosures are associated with increased stock return volatility and trading volume around and after the filings. Increases in risk disclosures are also associated with more dispersed forecast revisions around the filings. In contrast to prior literature documenting resolved uncertainties in...
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作者：Bradshaw, Mark T.; Brown, Lawrence D.; Huang, Kelly
作者单位：Boston College; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; University of Alabama System; University of Alabama Tuscaloosa
摘要：We examine the overall and individual analyst performance of 12-month-ahead target price forecasts over the 10 years from 2000 through 2009. Implied target price-based returns exceed actual returns by an average of 15 %, and absolute target price forecast errors average 45 %. At the end of the 12-month forecast horizon, only 38 % of target prices are met, but 64 % are met at some time during the forecast horizon. We find statistically significant but economically weak evidence of persistent di...
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作者：Ng, Jeffrey; Tuna, Irem; Verdi, Rodrigo
作者单位：Singapore Management University; University of London; London Business School; Massachusetts Institute of Technology (MIT)
摘要：In this paper, we first document evidence of underreaction to management forecast news. We then hypothesize that the credibility of the forecast influences the magnitude of this underreaction. Relying on evidence that more credible forecasts are associated with a larger reaction in the short window around the management forecasts and a smaller post-management forecast drift in returns, we show that the magnitude of the underreaction is smaller for firms that provide more credible forecasts. Ou...
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作者：Bryan, Daniel; Liu, M. H. Carol; Tiras, Samuel L.; Zhuang, Zili
作者单位：University of Washington; University of Washington Tacoma; Louisiana State University System; Louisiana State University; Chinese University of Hong Kong
摘要：By employing a Heckman two-stage selection model, we identify whether employing a financial expert with or without accounting expertise on the audit committee is optimal and how earnings quality varies across these optimal and suboptimal choices. Using four earnings quality measures (informativeness, timely loss recognition, earnings persistence, and accruals quality), we find no differences in earnings quality between firms optimally choosing an expert with or without accounting expertise, co...
