Showing 1 - 10 of 58
This study investigates whether culture in general and religion in particular mitigate earnings management. Using a cross-country data set, empirical tests based on rank regressions indicate that earnings management is unrelated to both religious affiliation and the degree of religiosity. In...
Persistent link: https://www.econbiz.de/10013136306
This study examines the private debt contracting relation between performance covenants and conservative accounting under asymmetric information. Asymmetric information is characterized by borrowers' proclivity to appropriate wealth from lenders to themselves. We find that accounting...
Persistent link: https://www.econbiz.de/10013070814
We examine whether domestic or foreign earnings contribute more to the variability of unexpected stock returns for a sample of U.S. multinationals and consider the role of investor sophistication. We use a variance decomposition methodology that measures the contribution of each earnings...
Persistent link: https://www.econbiz.de/10012712020
This paper examines the importance of foreign earnings relative to domestic earnings for a sample of U.S. multinationals using variance decomposition. Our methodology represents an alternative and complementary approach over the prior literature, which is based on traditional regressions and...
Persistent link: https://www.econbiz.de/10012754570
This study evaluates the impact of earnings on credit risk in the Credit Default Swap (CDS) market using levels, changes, and event study analyses. We find that earnings (cash flows, accruals) of reference firms are negatively and significantly correlated with the level of CDS premia, consistent...
Persistent link: https://www.econbiz.de/10012753307
This paper analyzes the relation between equity prices and conditional conservatism and introduces a new measure of conservatism at the firm-year level. We show that the asymmetric properties of conservative accounting, the existence of non-accounting sources of information, and the properties...
Persistent link: https://www.econbiz.de/10012753418
The management accounting and operations management literatures argue that the adoption of advanced manufacturing practices, such as JIT, necessitates complementary changes in the firm's Management Accounting and Control Systems. This study uses a sample of JIT and non-JIT plants operating in...
Persistent link: https://www.econbiz.de/10014029067
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