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作者：Elliott, John A.; Ghosh, Aloke; Moon, Doocheol
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Yonsei University
摘要：Viewing equity as a call option on the firm's assets with a strike price equal to contractual debt obligations yields an asymmetric prediction on how debt and equity markets view sustained growth. Debt holders are expected to benefit from sustained growth when the default risk is high, while equity holders value such growth when risk is low. Using Altman's z-score and debt ratings as alternative proxies for the default risk, we document a negative association between bond yield spreads and sus...
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作者：Feldman, Ronen; Govindaraj, Suresh; Livnat, Joshua; Segal, Benjamin
作者单位：New York University; Hebrew University of Jerusalem; Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; INSEAD Business School
摘要：This study explores whether the management discussion and analysis (MD&A) section of Forms 10-Q and 10-K has incremental information content beyond financial measures such as earnings surprises and accruals. It uses a classification scheme of words into positive and negative categories to measure the tone change in the MD&A section relative to prior periodic SEC filings. Our results indicate that short window market reactions around the SEC filing are significantly associated with the tone cha...
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作者：Horton, Joanne; Serafeim, George
作者单位：University of London; London School Economics & Political Science; Harvard University
摘要：We investigate the market reaction to, and the value-relevance of, information contained in the mandatory transitional documents required by International Financial Reporting Standards 1 (2005). We find significant negative abnormal returns for firms reporting negative earnings reconciliation. Although the informational content of the positive earnings adjustments is value-relevant before disclosure, for negative earnings adjustments it is value-relevant only after disclosure. This finding is ...
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作者：Tse, Senyo; Tucker, Jennifer Wu
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; State University System of Florida; University of Florida
摘要：An earnings surprise can be caused by a combination of firm-specific factors and market or industry factors. We hypothesize that managers have an incentive to time their warnings to occur soon after their industry peers' warnings to minimize their apparent responsibility for earnings shortfalls. Using duration analysis, we find that firms accelerate their warnings in response to peer firms' warnings. We conduct several tests to control for alternative explanations for warning clustering (for e...
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作者：Lev, Baruch; Li, Siyi; Sougiannis, Theodore
作者单位：New York University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Accounting estimates and projections potentially improve the relevance of financial information by providing managers a venue to convey to investors forward-looking, inside information. The quality of financial information is, however, compromised by the increasing difficulty of making reliable estimates and forecasts and the frequent managerial misuse of estimates. Given the ever-increasing prevalence of estimates in accounting data, particularly due to the move to fair value accounting, whet...
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作者：Cohen, Daniel; Mashruwala, Raj; Zach, Tzachi
作者单位：University System of Ohio; Ohio State University; New York University; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：Using a unique database of monthly media advertising spending, we examine whether managers engage in real earnings management to meet quarterly financial reporting benchmarks. We extend prior literature by (1) separately analyzing advertising activities, allowing us to explore the possibility that managers could reduce or boost advertising to meet benchmarks; (2) analyzing actual activities as opposed to inferring them from reported expenses, which are also subject to accrual choices; (3) inve...
