Using logit-based financial statement analysis, Ou and Penman estimate an earnings predictor (Pr) that also predicts returns. We develop a forecasting model that purges measurement error (i.e., expected earnings) from the Ou and Penman proxy for the market's unexpected earnings. If market...

This study examines the effect of equity ownership by managers on a firm's information environment vis-agrave;-vis its effect on analyst forecast accuracy and analyst following. We collect a sample of over 26,000 observations on managerial ownership during 1988-2002 and find that managerial...

This paper examines whether industry efforts to increase uniformity and improve transparency of a non-GAAP performance measure change manager behavior and market perceptions. We find that the frequency of REITs meeting or beating analysts' expectations of funds from operations (FFO) decreased...

Extreme accruals are commonly viewed as tainted by earnings management, contributing to lower quality earnings. We refer to this presumption as the earnings management/quality hypothesis. We directly examine three aspects of the presumed relation between the level of accruals and earnings...

This paper examines whether industry efforts to decrease managerial discretion, increase uniformity, and improve transparency of a non-GAAP performance measure change voluntary disclosure and market perceptions. We find that the frequency of REITs meeting or beating analysts' expectations of...

The Securities and Exchange Commission (SEC) has expressed concerns that managers may manipulate non-GAAP performance measures in an effort to mislead investors. Consistent with this concern, we find that the frequency of REITs meeting (failing to meet) analysts' expectations of funds from...

This study provides evidence on the role of accounting conservatism in mitigating bondholder/shareholder conflicts over dividend policy. In particular, we document that firms that face more severe conflicts over dividend policy tend to use more conservative accounting. Furthermore, we also...

We investigate (1) whether investors' earnings expectations include dividend information that is incremental to information in earnings components and (2) whether investors correctly weight the incremental information reflected in dividends. We find that both dividends and dividend changes are...

This study investigates the differential relations between components of book-to-market ratios and future stock returns. The decomposition follows the Ryan (1995) and Beaver and Ryan (1998) fixed effects estimation approach to categorize the deviations between book value and market value. We...