A longstanding literature suggests that earnings provide the market with relevant information about firm performance, but one often overlooked benefit is their role in disciplining market expectations. This study examines the role of earnings announcements in constraining potential mispricing...

We examine a comprehensive set of investigations by the SEC’s Division of Enforcement offices to provide evidence on the consequences of these office’s busyness on the formal investigation process. We find that higher office case backlog decreases the likelihood of an investigation into a...

This study documents a spillover effect of accounting fraud by showing that after the revelation of accounting misconduct, there is an increase in financially motivated neighborhood crime (robberies, thefts, etc.) in the cities where these misconduct firms are located. We find that more visible...

We examine a comprehensive set of investigations by SEC Division of Enforcement offices to provide evidence on the consequences of busyness on the formal investigation process. Our evidence suggests that higher office case backlog decreases the likelihood of investigation initiation. Consistent...

While decades of research focuses on the effectiveness of public enforcement and managers' incentives for financial misreporting, little is known about how the SEC selects targets for investigation. Using a new database of formal SEC investigations, we triangulate the determinants of SEC...

We exploit survey data from the Panel Study of Entrepreneurial Dynamics to investigate the roleof accounting in the likelihood that a small business more quickly achieves and maintains positiveoperating cash flow (profitability). We examine several potential aspects of accounting includingthe...

Research suggests that greater earnings disaggregation in financial statements leads to favorable market outcomes. This perspective is based on a presumption that the disaggregation separates earnings components with heterogeneous characteristics. We hypothesize that the disaggregation of...