A prominent challenge when drawing causal inference using observational data is the ubiquitous presence of endogenous regressors. The classical econometric method to handle regressor endogeneity requires instrumental variables that must satisfy the stringent condition of exclusion restriction,...

Unlike random sampling, selective sampling draws units based on the outcome values, such as over-sampling rare events in choice outcomes and extreme activities on continuous and count outcomes. Despite high cost effectiveness for marketing research, such endogenously selected samples must be...

We study how earnings attributes affect investors expectations about future earnings reflected in market prices. We separate the contribution of current earnings to price setting through a valuation incorporating expectations informed only by the current value of earnings. Its pricing error...

The Residual Earnings (RE) model has informed the capital market research over the last twenty years. To employ it in an empirical setting researchers commonly make extra assumptions about how future RE are related to and predicted by today's observed numbers. In this article, we show that the...

We argue that Ohlson's linear solution to the residual earnings (RE) equation, a crucial component of widely used value relevance research designs, is not necessarily a linear regression. Moreover, its coefficients are firm-dependent. As such, its empirical specifications, the price-levels and...

We study how earnings attributes affect investors expectations about future earnings reflected in market prices. We separate the current earnings contribution to the formation of future earnings expectations through a fictitious valuation incorporating expectations informed only by current...

The COVID-19 pandemic has resulted in extreme uncertainty in the future earnings of many firms. In this paper, we examine how firms’ exposure to the pandemic affects their guidance withdrawals. Almost half the firms in our sample withdraw their management earnings guidance instead of...