Showing 1 - 10 of 50
This paper investigates whether the bullwhip has economic consequences at the firm level. In particular, we examine the relation between the bullwhip and various accounting/financial performance measures including equity returns, cash flows, earnings, and earnings attributes such as earnings...
Persistent link: https://www.econbiz.de/10012980810
One of the critical factors that impacts outsourcing decisions in supply chains is the bullwhip effect (BE). This effect refers to the ubiquitous phenomenon whereby firm-level production is more volatile than its demand. The literature assumes that the BE increases costs and reduces...
Persistent link: https://www.econbiz.de/10014345199
We model and estimate the term structure of implied costs of equity capital (and implied risk premia) at the firm level for the years 1996-2015 from forward looking option contracts. Empirical tests reject the assumption that the term structure of implied firm-level costs of equity is constant...
Persistent link: https://www.econbiz.de/10012905974
We model and estimate the term structure of implied costs of equity capital (and implied risk premia) at the firm level for the years 1996-2015 from forward looking option contracts. Empirical tests reject the assumption that the term structure of implied firm-level costs of equity is constant...
Persistent link: https://www.econbiz.de/10012909319
Form 8-K reports filed with the SEC often exhibit lags raising the potential for information leakage that could be exploited by informed traders. This study provides evidence that institutional investors are able to capitalize on 8-K filing lags. Consistent with extant theories, this study...
Persistent link: https://www.econbiz.de/10012889547
This study explores the governance role of accounting conservatism by investigating changes in financial reporting conservatism before and after the passage of state anti-takeover laws. The passage of these anti-takeover laws introduced an exogenous shock to the takeover threat faced by firms...
Persistent link: https://www.econbiz.de/10013141818
We model the dynamic survival of earnings fixated investors in a competitive securities market that allows for learning and arbitrage and that is populated by heterogeneous investors. Our model is distinct from those based on aggressive trading by overconfident investors. We prove that in the...
Persistent link: https://www.econbiz.de/10011897946
This study tests whether IFRS adoption increased accounting transparency based on model-driven hypotheses. Duffie and Lando (2001) show that changes to accounting transparency affect the spread/maturity relation of CDS instruments in very specific ways. Consistent with their model, we find that...
Persistent link: https://www.econbiz.de/10013018511
In frictionless capital markets with complete information and rational investors, stock prices adjust to new information instantaneously and completely. However, a substantial body of research studies information imperfections such as asymmetric information and incomplete information....
Persistent link: https://www.econbiz.de/10013008409
We test the hypotheses that (i) poor accounting quality is associated with delayed stock price adjustment to information, and (ii) the accounting quality component of price delay predicts stock returns. We define accounting quality as the precision with which financial reporting informs equity...
Persistent link: https://www.econbiz.de/10013009269