This study examines the influence of investor sentiment on managers' discretionary disclosure of ldquo;pro formardquo; (adjusted) earnings metrics in earnings press releases. We find that managers' propensity to disclose an adjusted earnings metric increases with the level of investor sentiment...

Mobile internet devices reduce trading frictions and information search costs for investors, but also introduce attention-competing activities,such as social networking. We use exogenous nationwide and city-level outages of the Blackberry Internet Service (BIS) to investigate the effect of...

Mobile internet devices reduce trading frictions and information search costs for investors, but also introduce attention-competing activities,such as social networking. We use exogenous nationwide and city-level outages of the Blackberry Internet Service (BIS) to investigate the effect of...

Firms are increasingly disseminating images on social media that display customized earnings measures (“non-GAAP images”). This practice falls outside the scope of mandatory disclosure rules on non-GAAP prominence in earnings releases and SEC filings. Using an experiment, we isolate this...

We use a machine learning technique to assess whether the thematic content of financial statement disclosures (labeled topic) is incrementally informative in predicting intentional misreporting. Using a Bayesian topic modeling algorithm, we determine and empirically quantify the topic content of...

Does mobile internet distract “connected investors” from participating in financial markets? We examine this limited attention hypothesis using exogenous outages of the Blackberry Internet Service (BIS). We find that trading volume and trading frequency surge by 6% on days when BIS...

We investigate the disclosure and prominence of non-GAAP earnings metrics in IPO prospectuses and how these disclosures affect IPO valuation. In contrast to already-public firms, we find an inverted U-shaped relation between IPO firms' GAAP performance and the likelihood that they will disclose...

We provide empirical evidence on the quality of street cash flow from operations (CFO) as an alternative financial performance summary measure. We focus our investigation on the quality of the items analysts exclude in their determination of street CFO. Based on a sample of 8,518 firm-year...

This paper documents the tendency of mutual fund managers to follow analyst recommendation revisions when they trade stocks, and the impact of analyst revisioninduced mutual fund herds on stock prices. We find that mutual fund herds follow consensus revisions in analyst recommendations,...

This paper documents the tendency of mutual fund managers to follow analyst recommendation revisions when they trade stocks, and the impact of analyst revisioninduced mutual fund herds on stock prices. We find that mutual fund herds follow consensus revisions in analyst recommendations,...