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作者：Huang, Qianyun; Skantz, Terrance R.
作者单位：City University of New York (CUNY) System; University of Texas System; University of Texas Arlington
摘要：Using adverse-selection cost as a proxy for information asymmetry, we find evidence that non-GAAP earnings numbers issued by management (pro forma earnings) and analysts (street earnings) improve price discovery. First, information asymmetry before an earnings announcement is positively associated with the probability of a non-GAAP earnings number at the forthcoming earnings announcement. Second, the post-announcement reduction in information asymmetry is greater when managers or analysts issu...
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作者：Friedman, Henry L.; Heinle, Mirko S.
作者单位：University of California System; University of California Los Angeles; University of Pennsylvania
摘要：Firms often undertake activities that do not necessarily increase cash flows (e.g., costly investments in corporate social responsibility or CSR), and some investors value these non cash activities (i.e., they have a taste for these activities). We develop a model to capture this phenomenon and focus on the asset-pricing implications of differences in investors' tastes for firms' activities and outputs. Our model shows that, first, investor taste differences provide a basis for investor client...
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作者：Neururer, Thaddeus; Papadakis, George; Riedl, Edward J.
作者单位：Boston University; U.S. Securities & Exchange Commission (SEC)
摘要：This paper investigates alternative models of learning to explain changes in uncertainty surrounding earnings innovations. As a proxy for investor uncertainty, we use model-free implied volatilities; as a proxy for earnings innovations, representing signals of firm performance likely to drive investor perceptions of uncertainty, we use quarterly unexpected earnings benchmarked to the consensus forecast. We document that uncertainty declines on average after the release of quarterly earnings an...
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作者：Ge, Weili; Tanlu, Lloyd; Zhang, Jenny Li
作者单位：University of Washington; University of Washington Seattle; Northeastern University; University of British Columbia
摘要：In this paper, we examine the consequences of the decision to destagger the election of directors using a sample of firms that switched from a staggered to a destaggered board structure from 2002 through 2010. We find that the likelihood of destaggering increases in shareholder activism, firm size, and poor prior accounting performance. Furthermore, we find that firms that destagger tend to have larger boards and a lower entrenchment index prior to destaggering. We then use our determinants mo...
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作者：Nezlobin, Alexander; Rajan, Madhav V.; Reichelstein, Stefan
作者单位：University of California System; University of California Berkeley; Stanford University
摘要：We examine the structural properties of a firm's price-to-earnings (P/E) and price-to-book (P/B) ratios and the relation between these two ratios. A benchmark result is obtained under the hypothesis that firms use replacement cost accounting to value their operating assets, so that the P/B ratio coincides with Tobin's q. The firm's P/E ratio can then be expressed as a convex combination of the P/E ratios suggested respectively by the permanent earnings model and the Gordon growth model, with t...
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作者：Zhu, Wei
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：I investigate the relation between accruals and firm-level price crashes, representing extreme price decreases in weekly returns. I find that high accruals predict a higher price crash probability than low accruals. This finding can be explained by managers' use of income-increasing accrual estimates to hoard bad news. Once accumulated bad news crosses a tipping point, it is released all at once and results in a price crash. Consistent with this explanation, I find the observed relation to be ...
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作者：Choudhary, Preeti; Koester, Allison; Shevlin, Terry
作者单位：Georgetown University; University of California System; University of California Irvine
摘要：We develop and validate a measure of tax accrual quality. Tax accrual quality captures variation in the extent to which the income tax accrual maps into income tax-related cash flows, with lower variation indicating a higher quality tax accrual. Low tax accrual quality arises from (1) management estimation error and (2) financial reporting standards that lead to differences between income tax expense and income tax cash flows not captured by deferred tax assets and liabilities. We validate our...
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作者：Green, Jeremiah; Hand, John R. M.; Zhang, X. Frank
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of North Carolina; University of North Carolina Chapel Hill; Yale University
摘要：We investigate the number of and reasons for errors and questionable judgments that sell-side equity analysts make in constructing and executing discounted cash flow (DCF) equity valuation models. For a sample of 120 DCF models detailed in reports issued by U.S. brokers in 2012 and 2013, we estimate that analysts make a median of three theory-related and/or execution errors and four questionable economic judgments per DCF. Recalculating analysts' DCFs after correcting for major errors changes ...
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作者：Bernardo, Antonio E.; Cai, Hongbin; Luo, Jiang
作者单位：University of California System; University of California Los Angeles; Peking University; Nanyang Technological University
摘要：We develop a theory of stock-price-based incentives even when the stock price does not contain information unknown to the firm. In our model, a manager must search for and decide on new investment projects when the market may have a difference of opinion about the quality of the firm's investment opportunities. The firm optimally provides incentives based solely on realized earnings, leading to an efficient investment policy, when the market has congruent or pessimistic beliefs; however, the f...
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作者：Friedman, Henry L.; Hughes, John S.; Saouma, Richard
作者单位：University of California System; University of California Los Angeles; Utah System of Higher Education; University of Utah
摘要：We examine the effects of biased (conservative or liberal) reporting on product market competition. Cournot duopolists observe either firm-specific or industry-wide shocks and provide noisy reports subject to an exogenous mandated bias attributed to public policy. Given neutral prior beliefs, either a conservative bias or a liberal bias enhances overall reporting-system informativeness as measured by the reduction of uncertainty. Consistent with previously established effects in the informatio...
