Showing 1 - 10 of 162
We hypothesize that conference calls are voluntary disclosures that lead to long-term reductions in information asymmetry among equity investors. Cross-sectional and time-series tests show that the level of information asymmetry is negatively associated with conference call activity. We find...
Persistent link: https://www.econbiz.de/10012737594
We examine the effect of earnings surprises on changes in information asymmetry. We hypothesize and find that asymmetry is lower (higher) in the quarter following positive (negative) earnings surprises compared to firms that meet the consensus analyst earnings forecast. The relations between...
Persistent link: https://www.econbiz.de/10012726961
We examine the influence of the ex ante risk of class action securities litigation on firms' decisions to issue management earnings forecasts as well as the characteristics of those forecasts. We find that litigation risk is positively associated with the likelihood of issuing a forecast for...
Persistent link: https://www.econbiz.de/10012736527
This study examines how disclosure quality is related to the long-run level of information asymmetry. We examine two potential mechanisms through which disclosure quality is expected to reduce the long-run level of information asymmetry: (1) disclosure quality will alter the trading incentives...
Persistent link: https://www.econbiz.de/10012735655
We examine two potential mechanisms through which disclosure quality is expected to reduce information asymmetry: (1) altering the trading incentives of informed and uninformed investors so that there is relatively less trading by privately informed investors, and (2) reducing the likelihood...
Persistent link: https://www.econbiz.de/10012777986
We provide evidence on the “principles vs. rules” standards debate by examining how changes in cash flow reporting methods required by SFAS 95 Statement of Cash Flows affected firms' information environments. We argue that adoption of SFAS 95 represented a change from a principle based...
Persistent link: https://www.econbiz.de/10013076718
This study examines the properties of the R-squared metric frequently used in accounting research as a measure of value relevance. Analytical results show that the metric is unreliable in the presence of scale effects. Specifically, we show that the metric is upwardly biased for accounting...
Persistent link: https://www.econbiz.de/10012744032
We explore how the readability of annual reports varies with earnings management. Using the Fog Index to measure readability (Li 2008), and focusing on the management discussion and analysis section of the annual report (MD&A), we predict and find that firms most likely to have managed earnings...
Persistent link: https://www.econbiz.de/10012981807
The 1992 revision of executive compensation disclosure rules in the U.S. could have benefited shareholders by inducing corporate governance improvements or harmed them by increasing disclosure costs. Consistent with the governance improvement hypothesis, companies that lobbied against the...
Persistent link: https://www.econbiz.de/10012740679
Viewing the detection of earnings management from the perspective of a crime scene investigator sheds new light on prior research on earnings management and its close relative, earnings quality. Ball and Shivakumar (2007) and Teoh et al. (1998) are used to illustrate the application of seven...
Persistent link: https://www.econbiz.de/10012726374