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作者：Cao, Sean Shun; Narayanamoorthy, Ganapathi S.
作者单位：University of Massachusetts System; University of Massachusetts Amherst; University of Illinois System; University of Illinois Urbana-Champaign
摘要：We find that lower ex ante earnings volatility leads to higher PostEarnings Announcement Drift (PEAD). PEAD is a function of both the magnitude of an earnings surprise and its persistence. While prior research has largely investigated market reactions to the magnitude of the earnings surprise, in this study we show that the persistence of the earnings surprise is equally important. A unique feature of the anomalous PEAD returns documented here concerns the association between abnormal returns ...
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作者：Lang, Mark; Lins, Karl V.; Maffett, Mark
作者单位：University of North Carolina; University of North Carolina Chapel Hill; Utah System of Higher Education; University of Utah
摘要：We examine the relation between firm-level transparency, stock market liquidity, and valuation across countries, focusing on whether the relation varies with a firm's characteristics and economic environment. We document lower transaction costs and greater liquidity (as measured by lower bid-ask spreads and fewer zero-return days) for firms with greater transparency (as measured by less evidence of earnings management, better accounting standards, higher quality auditors, more analyst followin...
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作者：De Franco, Gus; Kothari, S. P.; Verdi, Rodrigo S.
作者单位：University of Toronto; Massachusetts Institute of Technology (MIT)
摘要：Investors, regulators, academics, and researchers all emphasize the importance of financial statement comparability. However, an empirical construct of comparability is typically not specified. In addition, little evidence exists on the benefits of comparability to users. This study attempts to fill these gaps by developing a measure of financial statement comparability. Empirically, this measure is positively related to analyst following and forecast accuracy, and negatively related to analys...
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作者：Ding, Shujun; Beaulieu, Philip
作者单位：University of Ottawa; University of Calgary
摘要：Moods are low-intensity affective states that individuals bring to a decision, and may be especially important when the balanced scorecard (BSC) is used for performance evaluation purposes. We propose that financial incentives can motivate decision-makers to correct mood congruency biases, in which judgments and decisions are consistent with moods. In experiment 1, participants rated the performance of one division manager based on two accounting measures and another manager based on a 16-meas...
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作者：Jagolinzer, Alan D.; Larcker, David F.; Taylor, Daniel J.
作者单位：University of Colorado System; University of Colorado Boulder; Stanford University; University of Pennsylvania
摘要：Most corporate governance research focuses on the behavior of chief executive officers, board members, institutional shareholders, and other similar parties. Little research focuses on the impact of executives whose primary responsibility is to enforce and shape corporate governance inside the firm. This study examines the role of the general counsel (GC) in mitigating informed trading by corporate insiders. We find that insider trading profits and the predictive ability of insider trades for ...
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作者：Mak, Chun Yu; Strong, Norman; Walker, Martin
作者单位：University of Birmingham; University of Manchester
摘要：We extend standard models of conditional earnings conservatism and adaptation value to the context of the corporate refocusing activities of UK listed companies. This analysis is interesting because refocusing activities are: (1) commonly anticipated by significant negative returns in the financial year(s) before the refocusing event; (2) typically associated with large material charges; and (3) likely to be part of a strategic plan with the internal decision preceding the formal public announ...
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作者：Brown, Stephen V.; Tucker, Jennifer Wu
作者单位：State University System of Florida; University of Florida
摘要：The Securities and Exchange Commission (SEC) has expressed concern about the informativeness of firms' Management Discussion and Analysis (MD&A) disclosures. A firm's MD&A is potentially uninformative if it does not change appreciably from the previous year after significant economic changes at the firm. We introduce a measure for narrative disclosure-the degree to which the MD&A differs from the previous disclosure-and provide three findings on the usefulness of MD&A disclosure. First, firms ...
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作者：Serafeim, George
作者单位：Harvard University
摘要：I analyze Embedded Value (EV) reporting by firms with life insurance operations to assess the impact of unregulated financial reporting on transparency and to examine the institutional characteristics that promote unregulated reporting. Under EV accounting, the present value of future cash flows from in-force contracts is included in shareholders' equity, and profit is calculated as the change in equity between two periods. In contrast to Generally Accepted Accounting Principles (GAAP), this a...
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作者：Tan, Hongping; Wang, Shiheng; Welker, Michael
作者单位：University of Waterloo; Hong Kong University of Science & Technology; Queens University - Canada
摘要：This study investigates how accounting harmonization affects one particular group of financial statement users-financial analysts. We find that mandatory International Financial Reporting Standards (IFRS) adoption attracts foreign analysts, particularly those from countries that are simultaneously adopting IFRS along with the covered firm's country and those with prior IFRS experience. We also find that mandatory IFRS adoption improves foreign analysts' forecast accuracy. The change in analyst...
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作者：Chen, Ting; Martin, Xiumin
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Washington University (WUSTL)
摘要：This paper investigates whether private information from lending activities improves the forecast accuracy of bank-affiliated analysts. Using a matched sample design, matching by affiliated bank or borrower, we demonstrate that the forecast accuracy of bank-affiliated analysts increases after the followed firm borrows from the affiliated bank. We also find that the increase in forecast accuracy is more pronounced for borrowers with greater information asymmetry and bad news, and for deals with...
