The adverse consequences of poor earnings quality have been the subject of significant debate among academics, practitioners and regulators. However, the empirical evidence on pricing implications of earnings quality is sparse and controversial. We examine one potential consequence of poor...

Information asymmetry in financial markets relates to the idea that one party to a transaction has better information than the other. Since financial reporting involves the transmission of value relevant enterprise information, we investigate whether the quality of reported earnings can...

This study presents empirical evidence on the pattern of returns and investor trades around and shortly after Chapter 11 bankruptcy petition filings. Consistent with prior research, we find that share prices plunge before and at the bankruptcy filing date. Beginning in the 1990's, however, firms...