The exercise price of stock options is typically the closing stock price on the option grant dates, so managers can potentially benefit from low stock prices on those dates. Prior studies find that on average, managers issue more pessimistic guidance before than after grant dates. They interpret...

Firms can increase their level of conservatism by recognizing adverse economic events more promptly or by delaying the recognition of positive economic events, that is, by increasing their loss or gains conservatism, respectively. We extend prior research by examining the independent...

Prior studies show that the risk level of each new cohort of listed firms is higher than its predecessor's. We find that these risk differences are persistent and investigate two potential explanations: (1) Each cohort adopts and retains operating innovations that are associated with higher...