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作者：Callen, Jeffrey L.; Segal, Dan; Hope, Ole-Kristian
作者单位：University of Toronto; Reichman University
摘要：This paper analyzes the relation between equity prices and conditional conservatism and introduces a new measure of conservatism at the firm-year level. We show that the asymmetric properties of conservative accounting, the existence of non-accounting sources of information, and the properties of GAAP related to special items combine to generate a nonlinear relation between unexpected equity returns and earnings news (the shock to expected current and future earnings). Based on this model, we ...
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作者：D'Souza, Julia; Ramesh, K.; Shen, Min
作者单位：Cornell University; Michigan State University; Michigan State University's Broad College of Business; George Mason University
摘要：We provide new evidence on the disclosure in earnings announcements of financial statement line items prepared under Generally Accepted Accounting Principles (GAAP). First, we investigate the circumstances that might provide disincentives generally for GAAP line item disclosures. We find that managers who regularly intervene in the earnings reporting process limit disclosures at the aggregate level and in each of the financial statements so as to more effectively guide investor attention to su...
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作者：Frankel, Richard; Mayew, William J.; Sun, Yan
作者单位：Washington University (WUSTL); Duke University; Saint Louis University
摘要：Anecdotal and survey evidence suggest that managers take actions to avoid small negative earnings surprises because they fear disproportionate, negative stock-price effects. However, empirical research has failed to document an asymmetric pricing effect. We investigate investor relations costs as an alternative incentive for managers to avoid small negative earnings surprises. Guided by CFO survey evidence from Graham et al. (J Account Econ 40:3-73, 2005), we operationalize investor relations ...
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作者：Chen, Zhihong; Dhaliwal, Dan S.; Xie, Hong
作者单位：University of Arizona; City University of Hong Kong; Korea University; University of Kentucky
摘要：We examine the effect of Regulation Fair Disclosure (Reg FD) on the cost of equity capital. We find some evidence that (1) the cost of capital declines in the post-Reg FD period relative to the pre-Reg FD period, on average, for a broad cross-section of US firms, (2) the decrease in the cost of capital post Reg FD is mainly for medium and large firms but is insignificant for small firms, and (3) the decrease in the cost of capital post Reg FD is systematically related to firm characteristics i...
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作者：Rees, Lynn; Thomas, Wayne
作者单位：University of Oklahoma System; University of Oklahoma - Norman; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：Existing research provides competing theories about how dispersion of investor beliefs might affect stock prices. We measure changes in dispersion of investor beliefs around earnings announcements using changes in the dispersion of individual analysts' forecasts. We find that the 3-day market response to earnings announcements is negatively associated with changes in dispersion, consistent with the cost of capital hypothesis. The results hold after controlling for the current earnings surprise...
