In this study, a model is introduced to explain the relation between the speed of market reaction to accounting earnings information and the precision of an individual's expectations prior to the earnings announcement. The model predicts that the relationship is negative. A method of estimating...

An issue that has long been of interest in financial accounting research is the question of whether firms take advantage of areas in which flexibility exists in financial reporting standards in order to improve reported performance in the annual financial statements. In the early 1980s, a...

The purpose of this dissertation is to extend the communication model to a situation where the agent searches for pre-decision information with effort in his own self-interest. We first introduce the agency model that involves the agent's information-searching behavior, the choice of information...

Using two samples (one as an experimental and one as a control), the authors evaluated the joint effect of two factors on the behavior of common stock prices. These factors were (1) the decision to switch the method of costing inventory to LIFO, and (2) the sign of the expected growth in EPS...

This study presents theoretical and empirical analyses to suggest a previously‐unknown size‐related contingency in the relationship between market variables and various commonly‐used financial ratios, including Net Income/Total Assets, Current Assets/Sales, Current Assets/Current...

This study investigates the time‐series properties of operating cash flows per share and earnings per share for all manufacturing firms on the Compustat Quarterly Industrial tape for which sufficient data are available. Both individually‐identified and “premier” models are compared on...

Previous studies state that the value relevance of earnings information has declined over time, based on decreasing ERCs and R2s. This paper demonstrates that measurement error bias is a major factor that drives these results when using earnings changes as a proxy for unexpected earnings. The...

Prior studies fail to find that dedicated institutional investors (those characterized by long trading horizons and high ownership stakes in portfolio firms) trade in anticipation of future performance. In this study, I find that dedicated institutions sell shares of bankrupt firms at least one...