Accountants examine multiple indicators when assessing whether individual assets are impaired. Different indicators predict cash flows over varying time horizons, and their importance varies with how far into the future individual assets are expected to generate cash flows. We predict that...

Earnings management research often uses discretionary accruals from Jones-type models. These models assume a linear relation between sales changes and accruals. However, we predict and find that sales changes have a non-linear asymmetric effect on accruals through managers' operating decisions....

Production backlog (a.k.a. order backlog) is an important non-GAAP metric that is a leading indicator of future firm performance. We explore how various factors interacted with production backlog leads to potentially unexpected relationships in predicting future earnings. This paper documents...

Neuropsychological studies propose that listeners unconsciously assess speakers’ trustworthiness via their facial expressions. Building on this theory, we investigate how investors respond to CEOs’ dynamic hemifacial asymmetry of expressions (HFAsy) shown on CNBC’s video interviews about...

In this study, we examine how business strategies affect compensation contracting and performance evaluation. Using textual measures of business strategies derived from corporate 10-K filings, we find that firms adopting the operational excellence strategy place a higher compensation weight on...

We investigate how the arrival of Estimize, a provider of crowdsourced earnings forecasts, impacts IBES analysts' forecast timeliness and facilitates market efficiency. We find that IBES analysts become more responsive to earnings announcements and start issuing their quarterly forecasts earlier...

In this study, we follow the strategy typology proposed by Treacy and Wiersema (1995) and develop a textual measure of firms’ generic strategy along three dimensions: product leadership, customer intimacy, and operational excellence. Product-leadership firms emphasize innovation and confront...

This paper uses text parsing analysis on managerial self-disclosure in regulatory Form 10-K and develops a three-dimensional measure of business strategy for a large sample over 22 years. To ensure content validity, we draw the keyword list from prior literature. Adding to the face validity of...