This study examines whether analysts' forecast revisions exhibited increased herding behavior following the adoption of Regulation Fair Disclosure. A recent model by Arya, Mittendorf, and Narayanamoorthy (2005) projects that one potential consequence of Regulation Fair Disclosure might be...

This study investigates the effectiveness of government intervention in rescuing bearish markets in a transition economy. Focusing on a pre- and a post-intervention period, the findings reveal that government intervention successfully rescued bearish markets in China and led to a fundamental...

The aim of this study is to introduce an innovative text mining approach to assess firms' risks using unstructured textual disclosure from annual reports. Specifically, we use Natural Language Processing techniques to extract firms' self-identified risks including financial, strategic,...

A unique feature of Chinese auditing and one under consideration for adoption in the U.S. is regulatory oversight of individual auditors. This paper analyzes enforcement actions by the China Securities Regulatory Commission (CSRC) against engagement auditors and investigates whether audit...

We examine whether litigation risk is systematically related to corporate tax avoidance. We find that the exogenous reduction in the threat of securities class action litigation due to the 1999 ruling of the Ninth Circuit Court of Appeals effectively increases corporate tax avoidance, which is...

The proliferation of institutions has drawn an attention in the financial economists' interest on the effect of institutional trading on market volatility for a few decades. Existing research on institutional investors, however, has not considered separating a bull market from a bear market, an...

In this study, we provide direct evidence on the association between balance sheet classification shifting (BSCS) from current to long-term liabilities and non-articulated operating accruals. We first develop a measure of BSCS and then document a positive association between BSCS and...

This paper studies how a recent, substantial increase in the deposit insurance ceiling impacts discretion in banks’ loan loss provisions (LLP). We compare affected and exogenously unaffected banks using propensity-score-matched difference-in-differences. Affected banks post higher values of...