We investigate the equity valuation effects of the Pension Protection Act of 2006 (hereafter PPA 2006). The PPA 2006 has two main provisions: (1) firms must fully fund their pension plans within seven years (previously allowed 30 years to fund 90 percent of the pension liability), and (2) firms...

We investigate the relation between firms' weighted average cost of capital and internal financial resources, using mandatory pension contributions as a proxy for internal financial resources. Rauh (2006) documents a negative association between mandatory pension contributions and capital...

This paper uses stock market data to investigate the popular claim the investors are misled by the quot;pro formaquot; earnings numbers conspicuously featured in the press releases of some U.S. firms. We first document the frequency and magnitude of pro forma earnings in press releases issued...

We investigate the relation between earnings surprises and post-announcement stock returns for 1991-1997, and show that the profit opportunities previously associated with simple trading strategies designed to exploit the drift phenomenon have now been substantially eliminated. This...

This paper investigates the return implications of the cash flows and accruals components of unexpected earnings. We find that unexpected cash flows have greater persistence than unexpected accruals, and that this difference is driven primarily by loss firms. We also find that markets appear to...

This paper examines the proposition that the economic performance of advanced capitalist countries depends on their size and ethnic composition. As such it blends insights from two important literatures in comparative political economy. One is exemplified by the work of Peter Katzenstein, who...