The incentive effect of CEO portfolio delta (i.e., the sensitivity of CEO wealth to changes in stock price) on financial misreporting is inconclusive given a complex reward-risk tradeoff faced by CEOs (e.g., a positive “reward effect” versus a negative “risk effect”). We propose that the...

We use a large pictorial sample of Chinese financial analysts to test the association between facial width-to-height ratio (fWHR) and performance in men. Financial analysts offer an ideal setting for our investigation because we can objectively track individual analysts' behaviors and...

We examine the link between enhanced accounting comparability and the valuation performance of pricing multiples. Using the warranted multiple method proposed by Bhojraj and Lee (2002, Journal of Accounting Research), we demonstrate how enhanced accounting comparability leads to better...

The business media disseminates managers' earnings guidance news more broadly or creates new information content on the guidance (Drake et al. 2014). We hypothesize that the media's information dissemination encourages managers to continue issuing earnings guidance because their intended...

Financial journalists have two countervailing incentives when reporting on a firm's quarterly earnings guidance. On the one hand, their explicit incentive to attract readership leads them to express discrepant views that deviate from the guidance news managers intend to deliver. We hypothesize...

This paper examines the role of CEO integrity in determining whether a company's earnings benchmarks will be met, beaten or missed. Prior literature has provided evidence that managers have incentives for meeting or beating earnings benchmarks and are rewarded by the market for doing so (Lopez...

Classical agency theory argues that economic incentives can have a strong impact on opportunistic reporting behavior. On the other hand, behavioral literature suggests that agents also adhere to descriptive norms established by peers. Most studies examine these effects in isolation, ignoring the...

We develop a method that identifies the attention paid by earnings call participants to firms' climate change exposures. The method adapts a machine learning keyword discovery algorithm and captures exposures related to opportunity, physical, and regulatory shocks associated with climate change....