This study investigates the effect of a security regulation that occurs concomitantly with International Financial Reporting Standards (IFRS) adoption on the information content of earnings announcements in Italy. To identify the effect of this regulation, we use a treatment (i.e., Italy) and a...

The literature on ‘cash flow' or ‘earnings' beta is theoretically well-motivated in its use of fundamentals, instead of returns, to measure systematic risk. However, empirical measures of earnings beta based on either log-linearizing the return equation or log-linearizing the clean-surplus...

There is reliable evidence that managers smooth their reported earnings. If some firms manage earnings downwards (upwards) when they experience large positive (negative) earnings shocks and if investors have cognitive limits or are inattentive, then it is plausible that the post-earnings...

We examine how the provision of quarterly earnings guidance is affected by constraints on earnings management. We argue that costs of falling short of one's own guidance make managers reluctant to issue guidance without sufficient flexibility in their financial reporting system to manage...

This study investigates whether effective audit committees influence the association between management earnings forecasts and the properties of analysts‟ forecasts. We posit that this influence on the part of an audit committee would likely result from increased responsibility for monitoring...

The role of board secretaries is a unique institutional feature in China. Individuals in this senior executive role are responsible for coordinating information disclosure. We study the impact of board secretaries on management earnings forecasts and find that their legal expertise, accounting...

We investigate the implications of voluntary forecasting activity on the persistence of actual reported figures. We further explore the impact of managements' error direction (i.e. pessimistic versus optimistic manager) on the persistence of actual reported figures. We finally explore whether...

This study investigates the effect of real earnings management on two important aspects of earnings quality: earnings persistence and its informativeness about future cash flows. I focus on real earnings management through the abnormal reduction in discretionary expenditures and investigate how...

We examine the disclosure choice faced by managers when a previously-issued earnings forecast becomes inaccurate. In some cases, managers explicitly update the forecast with a revised earnings estimate, while in other cases, managers withdraw the original forecast without providing an update. We...

We study the market's reaction to the disclosure of non-GAAP earnings measures that are combined with high impression management. We construct an impression management score that captures several communication techniques that managers often use to positively bias investors' perceptions of firm's...