This study investigates associations between accounting restatements and external corporate governance considered as statutory and corporate charter provisions that limit shareholder participation in the governance process. The analysis indicates that characteristics of strong external...

We examine whether ownership and governance characteristics are associated with the firm's operating performance and stock price. We hypothesize that while ownership structure and governance mechanisms impact the firm's operating performance, they can also impact stakeholders' abilities to...

Both academic and practicing accountants use forecasts made by security analysts to estimate market expectations about forthcoming earnings announcements. We report empirical analysis to illustrate how common stock splits induce a loss of precision in computing forecast errors from commonly used...

We investigate the consequences of earnings management by analyzing stock price reactions to on-target quarterly earnings announcements (earnings that coincide with analysts' consensus expectations) during 1993-1999. We use techniques advanced in Jones (1991), Kang and Sivaramakrishnan (1995),...

Funds from Operations (FFO) is the prevailing performance measure in the Real Estate Investment Trust (REIT) industry. However, prior studies are inconclusive about the superiority of FFO over GAAP net income. Because depreciation is the largest reconciling item between FFO and net income, we...

Using the data from 1,267 firms suspected of managing earnings to avoid losses, this study evaluates the statistical power of the Jones (1991) model and the Kang and Sivaramakrishnan (1995) model. Both models offer strong evidence suggesting that these firms have inflated earnings by the order...

Studies in the capital market context indicate that earnings changes and earnings levels considered jointly provide a more comprehensive representation of unexpected earnings than either earnings changes or earnings levels considered alone. Recent studies of executive compensation demonstrate...

The contracting paradigm advanced in Smith and Watts (1992) suggests that both the risk-sharing and incentive consequences of performance-contingent compensation depend on the extent that investment opportunities comprise firm value. Following Smith and Watts we hypothesize that sensitivity of...