Could real-time big data help unravel material firm events? How would it compare with firm disclosure and traditional media in terms of timeliness and completeness? Could big data provide incremental value-relevant information for investors? With these questions in mind, we use a novel data set...

We experimentally study the deception detection capabilities of experienced auditors, using CEO narratives from earnings conference calls as case materials. We randomly assign narratives of fraud and non-fraud companies to auditors as well as the presence versus absence of an instruction...

We examine the cost-effectiveness, from the shareholders' perspective, of the accounting standards issued by the FASB during 1973-2009. In particular, we evaluate (i) the stock market reactions of firms affected by the standards surrounding events that changed the probability of issuance of...

Could real-time big data help unravel material firm events? How would it compare with firm disclosure and traditional media in terms of timeliness and completeness? Could big data provide incremental value-relevant information for investors? With these questions in mind, we use a novel data set...

This study adopts a two-step approach to highlight the disclosure quality channel that drives economic consequences of International Financial Reporting Standards [IFRS] adoption. This approach helps address the identification challenge noted by prior research and offer direct evidence on the...

This paper evaluates the real effects of the new lease standard, Accounting Standards Codification (ASC) 842, on firms’ investment and operational outcomes. Using a sample of airline companies, we find that after the issuance of ASC 842, public airlines (treatment firms) reduce operating lease...

The ways in which managers communicate information to capital market participants go far beyond financial statements and accounting numbers. Managers communicate economically relevant information both verbally, in documents distributed and available to investors (such as annual reports and SEC...

We propose an alternative explanation for the value-relevance of book value. Specifically, we suggest that book value can have an indirect role in valuation even under an earnings capitalization framework. We first show that past earnings are relevant for valuation (in addition to current...

We show that network advantages constitute an important intangible asset that goes unrecognized in the financial statements. For a sample of e-commerce firms, we find that network advantages created by website traffic have substantial explanatory power for stock prices over and above traditional...

We investigate whether the accruals anomaly documented by Sloan (1996) in the accounting literature is distinct from the value-glamour anomaly documented in the finance literature. We find that the accruals strategy earns abnormal returns incremental to past sales growth, book-to-market and...