This paper examines the association between pre-disclosure uncertainty and investor reliance on reported earnings. Our study is unique because it incorporates both context-specific and forecast-based measures of uncertainty. The analysis is based on data for 118 publicly-traded property and...

This paper develops a theory of the frequency of financial analysts' forecast revisions and then tests the empirical predictions of the model. Financial analysts act as information intermediaries for firms and investors and therefore their forecast revision frequency helps explain the...

This paper presents an instructional case based on the 2001 annual report of the Campbell Soup Company (CPB). During that year, CPB's shareowners' equity went from a surplus of USD137 million to a deficit of USD247 million. The analysis will allow students to determine that the change resulted...

Purpose – This paper aims to examine the impact of managerial equity ownership on return on assets as a measure of profitability and two financial statement-based agency cost measures, i.e. asset utilization and an expense ratio, which proxy for management's efficiency in use of assets and...

This study examines the effects of public predisclosure information on market reactions to earnings announcements. We develop an empirical measure of public predisclosure information impounded in price prior to earnings announcements by cumulating abnormal returns on public news release dates...

This paper investigates the relationship between investor uncertainty, gauged by properties of analysts' forecasts, and the stock market response to earnings. We find that uncertainty is best characterized by a comprehensive measure recently proposed by <link rid="b8">Barron, Kim, Lim and Stevens (1998)</link>, BKLS....

A fundamental property of a financial market is its degree of price informativeness. A major determinant of price informativeness is predisclosure information collected by financial analysts and then privately disseminated to clients, who make the recommended trades. We develop a dynamic model...