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作者：Dechow, Patricia M.; You, Haifeng
作者单位：University of Southern California; Hong Kong University of Science & Technology
摘要：We investigate the determinants of analysts' target price implied returns and the implication of our findings for investment decision-making. We identify four broad sets of factors that help explain the cross-sectional variation in target price implied returns: future realized stock returns, errors in forecasting fundamentals, errors in forecasting the expected return to risk, and biases relating to analysts' incentives. Our results suggest that all four sets help explain target price implied ...
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作者：Pyzoha, Jonathan S.; Taylor, Mark H.; Wu, Yi-Jing
作者单位：University System of Ohio; Miami University; State University System of Florida; University of South Florida; Texas Tech University System; Texas Tech University
摘要：We examine whether tone at the top emphasizing firm-level commercial, audit quality, or both goals (balanced) can nonconsciously affect auditors' engagement-level tendency to accept management's estimates, and whether the effects differ if management engages a specialist. This study is motivated by academics' and regulators' increasing attention on firm-level tone at the top and concerns about management bias in audited estimates, especially when the evidence is prepared by management's specia...
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作者：Hann, Rebecca N.; Kim, Heedong; Wang, Wenfeng; Zheng, Yue
作者单位：University System of Maryland; University of Maryland College Park; City University of New York (CUNY) System; Baruch College (CUNY); City University of Hong Kong; Hong Kong University of Science & Technology
摘要：Prior research documents large, persistent productivity dispersion even within narrowly defined industries, suggesting the presence of frictions that impede the efficient allocation of resources. In this paper, we consider the role of information frictions. We posit that high-quality financial reporting with respect to firm productivity can mitigate information frictions and hence facilitate the efficient allocation of resources across firms. Using a large sample of firms in the manufacturing ...
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作者：Cheynel, Edwige; Levine, Carolyn B.
作者单位：University of California System; University of California San Diego; University of Delaware
摘要：We model an information mosaic in which multiple signals-one gathered by an informed trader and the other publicly disclosed by the manager of the firm-are combined to estimate firm value. Under testable conditions, voluntary disclosures lead to higher ex ante information asymmetry and expected profits for the informed trader by allowing him to refine his trading strategy and complete his information mosaic. The informed trader's ability to combine information and enhance his advantage is more...
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作者：Kadan, Ohad; Madureira, Leonardo; Wang, Rong; Zach, Tzachi
作者单位：Washington University (WUSTL); University System of Ohio; Case Western Reserve University; Singapore Management University; University System of Ohio; Ohio State University
摘要：Sell-side analysts employ different benchmarks when defining their recommendations. A buy for some brokers means the stock is expected to outperform its industry, while for other brokers, it means the stock is expected to outperform the market or some return threshold. We show that these stated benchmarks have implications for the distribution of recommendations, price reactions to recommendations, and the investment value of recommendations. We conclude that, depending on the question, academ...
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作者：Murphy, Kevin J.; Sandino, Tatiana
作者单位：University of Southern California; Harvard University
摘要：We provide fresh evidence regarding the relation between compensation consultants and CEO pay. First, firms that employ consultants have higher-paid CEOs-this result is robust to firm fixed effects and matching on economic and governance variables. Second, while this relation is partly due to consultant conflicts of interest, it is largely explained by the impact consultants have on the composition and complexity of CEO pay plans; notably, this impact fully mediates the consultant-CEO pay rela...
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作者：Liu, Yuanyuan; Huang, Zhongwei; Jiang, Like; Messier, William F., Jr.
作者单位：Xi'an Jiaotong University; City St Georges, University of London; University of Melbourne; Norwegian School of Economics (NHH)
摘要：Financial analysts are required to disclose conflicts of interest (COI) in their research reports, but there is limited evidence on the effectiveness of COI disclosures. We investigate whether the influence of disclosing COI in analyst reports on investors' decision making depends on investment horizon. Experimental results show that short-term investors who view a COI disclosure are significantly less willing to invest in the recommended stock compared to short-term investors who do not view ...
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作者：Barth, Mary E.; Landsman, Wayne R.; Raval, Vivek; Wang, Sean
作者单位：Stanford University; University of North Carolina; University of North Carolina Chapel Hill; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; Southern Methodist University
摘要：This study finds that greater asymmetric timeliness of earnings in reflecting good and bad news is associated with slower resolution of investor disagreement and uncertainty at earnings announcements. These findings indicate that a potential cost of asymmetric timeliness is added complexity from requiring investors to disaggregate earnings into good and bad news components to assess the implications of the earnings announcement for their investment decisions. Such a disaggregation impedes the ...
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作者：Markle, Kevin S.; Mills, Lillian F.; Williams, Braden
作者单位：University of Iowa; University of Texas System; University of Texas Austin
摘要：The effects of tax rate changes on corporate profitability are not fully understood. Implicit tax theory predicts a positive relation between country-level tax rates and firm-level pretax returns. Conversely, income shifting should make reported pretax returns inversely related to tax rates. Among single-country European firms, we find robust evidence of corporate implicit taxes following tax rate changes, concentrated in firms that rely less on intangible assets and firms in closed economies ...
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作者：Kaplan, Steven E.; Kenchington, David G.; Wenzel, Brian S.
作者单位：Arizona State University; Arizona State University-Tempe; McGill University
摘要：Research documents that firms shift operating expenses into income-decreasing, but not income-increasing, discontinued operations. We argue that valuation considerations explain this asymmetric result, as acquirers are likely to value the earnings of income-increasing discontinued operations more highly than the earnings of income-decreasing discontinued operations. Using a large sample of hand-collected data, we show that pre-tax earnings and operating expenses are significantly more value-re...
