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作者：Henry, Elaine; Leone, Andrew J.
作者单位：Stevens Institute of Technology; University of Miami
摘要：This study evaluates alternative measures of the tone of financial narrative. We present evidence that word-frequency tone measures based on domain-specific wordlists-compared to general wordlists-better predict the market reaction to earnings announcements, have greater statistical power in short-window event studies, and exhibit more economically consistent post-announcement drift. Further, inverse document frequency weighting, advocated in Loughran and McDonald (2011), provides little impro...
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作者：Lee, Joshua
作者单位：State University System of Florida; Florida State University
摘要：This paper examines whether market participants infer negative information about future unexpected firm performance when managers adhere to predetermined scripts when responding to questions during earnings conference calls. I argue that managers respond to questions from prepared scripts to avoid the disclosure of bad news. Using a measure of the adherence to predetermined language, I provide evidence that a lack of spontaneity is negatively associated with the market reaction to the call and...
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作者：Twedt, Brady
作者单位：Indiana University System; Indiana University Bloomington
摘要：This study investigates the impact of dissemination on the efficiency of the price discovery process with respect to management earnings guidance disclosures. I first identify firm and guidance characteristics associated with the likelihood that guidance receives coverage in the Dow Jones Newswires. Using propensity score, within-firm, and returns-based matched control samples of guidance, I find that newswire dissemination is associated with larger initial price reactions and, more importantl...
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作者：Baginski, Stephen P.; Hinson, Lisa A.
作者单位：University System of Georgia; University of Georgia
摘要：We document the interrelationship of disclosure policy decisions among firms by providing evidence that the cessation of quarterly management forecast guidance by 656 firms (stoppers'') during 2004-2009 is associated with a pursuant increase in quarterly forecasts by previously non-forecasting firms in the same industries (free-riders''). Increased forecasting by free-riders is positively associated with the information loss in the industry (proxied by the number of stoppers in the industry, t...
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作者：Lin, Ji-Chai; Wang, Yanzhi (Andrew)
作者单位：Hong Kong Polytechnic University; National Taiwan University
摘要：To explain why firms with high research and development (R&D) intensity offer their investors higher stock returns, we argue that (1) high R&D capacity relative to firm valuation makes R&D-intensive firms attractive takeover targets, and that (2) the higher takeover probability leads their investors to face higher takeover risk, as proposed by Cremers, Nair, and John (2009), and require higher returns. We find evidence consistent with our hypothesis. Furthermore, we find that takeover probabil...
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作者：Frederickson, James R.; Zolotoy, Leon
作者单位：University of Melbourne
摘要：Consistent with investors having limited attention, we posit that when faced with competing earnings announcements, investors behave as if they queue the announcements based on a firm or earnings announcement attribute. We focus on two potential queuing attributes: (1) firm visibility, and (2) the expected cost of processing the earnings announcements. We find no support for queuing based on the latter, but find a statistically significant and economically meaningful queuing effect based on fi...
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作者：Hugon, Artur; Kumar, Alok; Lin, An-Ping
作者单位：Arizona State University; Arizona State University-Tempe; University of Miami; Singapore Management University
摘要：Although macroeconomic news has a major impact on corporate earnings, anecdotal evidence suggests that financial analyst research is inefficient with respect to such news. Examining analysts' earnings research, we find that they underreact to negative macroeconomic news. Analysts are not all equal, though, as analysts employed at the same firm as an active macroeconomist underreact much less. We find that the benefit of analyst access to an economist is concentrated in firms that are high in c...
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作者：Drake, Katharine D.; Goldman, Nathan C.; Lusch, Stephen J.
作者单位：University of Arizona; University of Texas System; University of Texas Dallas; University of Kansas
摘要：Deloitte's 2007 PCAOB Part II report identifies, among other issues, concerns related to the audit firm's quality controls with respect to auditing income tax accounts. We investigate whether Deloitte's actions to remediate the PCAOB's concerns are associated with changes to their clients' financial reporting for income taxes. We find that Deloitte's clients increased the reported valuation allowance on deferred tax assets and increased the reported reserve for uncertain tax benefits (UTBs) in...
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作者：Keune, Marsha B.; Mayhew, Brian W.; Schmidt, Jaime J.
作者单位：University System of Ohio; University of Dayton; University of Wisconsin System; University of Wisconsin Madison; University of Texas System; University of Texas Austin
摘要：This study examines local characteristics associated with non-Big 4 local market leadership and the impact of non-Big 4 local market leadership on competition. We identify non-Big 4 local market leaders by collecting accounting firm rankings from business publications for 46 of the largest metropolitan statistical areas from 2005-2010. These rankings are based on the number of local office employees and provide a more holistic measure of office size than measures based on public company audit ...
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作者：Baldenius, Tim; Nezlobin, Alexander A.; Vaysman, Igor
作者单位：New York University; University of California System; University of California Berkeley; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：In a dynamic setting with demand following a random process, we ask how investment and operating decisions can be delegated to a manager with unknown time preferences. Only the manager observes the demand realization in each period and, therefore, has private information when choosing whether to acquire the productive asset and, subsequently, how to utilize it. We derive accrual accounting-based performance measures under which the manager will make the efficient decisions provided the investm...
