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We provide insights into the inputs and valuation models used by valuation specialists. We survey 172 valuation specialists and conduct several follow-up interviews covering various topics, including the valuation inputs, models, and industry information that they use, as well as how they...
Persistent link: https://www.econbiz.de/10012839735
Bagnoli and Watts (2005) propose that a manager could reduce information asymmetry by choosing an income-decreasing accounting choice that signals the firm's relatively good future prospects. A limitation in testing this theory is that most income-decreasing accounting choices over time reverse...
Persistent link: https://www.econbiz.de/10012840204
Ineffective internal controls over financial reporting often relates to a lack of qualified personnel with sufficient accounting and technical expertise. In this study, we examine whether firms respond to internal control failures by increasing their demand for specific accounting and finance...
Persistent link: https://www.econbiz.de/10012841009
We examine the relationship between customer and supplier firms' abnormal accruals. We propose “earnings management” hypothesis and “customer demand shock” hypothesis. We find that customer firms' demand shocks link customer and supplier abnormal accruals as they propagate along the...
Persistent link: https://www.econbiz.de/10012901987
We document multiple dimensions of usefulness of banks' interest income sensitivity disclosures. First, we find management-generated sensitivity measures are predictive of future realized changes in net interest income. Second, we find financial analysts' forecasts of net interest income reflect...
Persistent link: https://www.econbiz.de/10012902341
This paper examines how low financial reporting frequency affects investors' reliance on alternative sources of earnings information. We find that the returns of semi-annual earnings announcers (i.e. low reporting frequency stocks, “LRF”) are almost twice as sensitive to the earnings...
Persistent link: https://www.econbiz.de/10012902417
I find common institutional ownership in a customer and its supplier increases the duration of their supply chain relationship, particularly when the common ownership is long-term and vertical frictions are greater. Using an instrument constructed around a shock to common ownership following a...
Persistent link: https://www.econbiz.de/10012902630
This paper examines the real effects of outlier opinions in the context of extreme analyst optimism. We find that managers appear to respond to the extremism in outlier forecasts with more aggressive earnings management, instead of ignoring them as noise. The effect of extreme optimism is more...
Persistent link: https://www.econbiz.de/10012903343
We investigate the association between public versus private ownership and future long-term changes in profitability. Managers have long debated the implications of public and private corporate ownership; however, little empirical research has provided insight into the issue. We find robust...
Persistent link: https://www.econbiz.de/10012905071
This study documents a spillover effect of accounting fraud by showing that after the revelation of accounting misconduct there is an increase in financially motivated neighborhood crime (robberies, thefts, etc.) in the cities where these misconduct firms are located. We find that more visible...
Persistent link: https://www.econbiz.de/10012898520