This study investigates recent reforms in financial reporting enforcement in Germany. The objective of these reforms was to promote a consistent and faithful application of accounting standards. Using a differences-in-differences approach, we find some evidence of a decrease in earnings...

This study examines the determinants of Facebook activity levels with a particular focus on Facebook activity around earnings announcements. Facebook activity is generally higher for firms with higher levels of analyst following, individual ownership, and trading volume, indicating that it is...

Drawing on the extensive economics literature on wage rigidity, we examine CEO bonus rigidity and, in particular, the implications of downward bonus rigidity for future performance. We first document distributional support for downward rigidity in bonus payments. More importantly, we find that...

This analysis examines the time-series properties of quarterly aggregate earnings. We find that when aggregated, quarterly earnings can be fairly well described as following a simple random walk (RW) process. That is, the best historical time-series predictor for quarterly aggregated earnings is...

This paper identifies a distinct immediate announcement period negative relation between earnings announcement surprises and aggregate market returns. Such a relation implies that market participants use earnings information in forming expectations about expected aggregate discount rates and,...

Ernstberger and Vogler (2007) employ the concurrent use of three distinct accounting standard regimes (German GAAP; U.S. GAAP; and IAS/IFRS GAAP) in Germany as a foundation for evaluating the relation between accounting standard regime and equity return attributes. They find that firms using...

Rational expectations models of financial markets largely based on the path breaking work by Grossman and Stiglitz (1980) are playing an increasing role in motivating empirical analyses addressing the role of information in contemporary equity markets. This paper provides an intuitive and...

This study examines the determinants of Facebook activity levels with a particular focus on Facebook activity around earnings announcements. Facebook activity is generally higher for firms with higher levels of analyst following, individual ownership, and trading volume, indicating that it is...