Showing 1 - 9 of 9
While aggregate earnings should affect aggregate stock returns, standard portfolio theory predicts that the cross-sectional dispersion in firm-level earnings would not affect aggregate stock returns. Nonetheless, this paper demonstrates a surprisingly robust relation between cross-sectional...
Persistent link: https://www.econbiz.de/10009440958
his paper develops a theoretical model to understand the contractual role of accounting conservatism in debt contracts. The optimal debt contract includes an accounting based covenant that gives the creditor the right to liquidate when accounting information reveals unfavorable news about the...
Persistent link: https://www.econbiz.de/10009441096
This study examines how accounting conservatism may affect the information environment of analysts’ earnings forecasts, taking into account the interaction between unconditional and conditional conservatism. Unconditional conservatism preempts conditional conservatism in the later period and...
Persistent link: https://www.econbiz.de/10009441147
This paper examines risk-taking incentives in banks under different accounting regimes with capital regulation. In the model the bank's decisions of capital issuance and investment policy are jointly determined. Given exogenous minimum capital requirement, the bank is more likely to issue equity...
Persistent link: https://www.econbiz.de/10009441185
Prior research documents that individual stock returns respond to earnings differently under new accounting standards, regulations, or changes in enforcement. This paper examines whether this result extends to the aggregate stock market. We take a macro perspective and study the properties of...
Persistent link: https://www.econbiz.de/10009441198
This paper studies the effects of capacity utilization on accounting profit margins and stock returns. Since accounting profit margins represent the average profit per unit and not the economists' concept of unit contribution margin, the marginal/variable profit per unit, a firm with idle...
Persistent link: https://www.econbiz.de/10009441203
The Livestock Mandatory Reporting Act (MPR) of 1999 was implemented in April 2001. Empirical evidence indicates a significant change in intra-week price dispersion associated with publicly reported fed cattle grid premiums and discounts occurring after MPR implementation. The research objective...
Persistent link: https://www.econbiz.de/10009444555
This paper aims to examine the impacts of oil-price shocks on China's price levels. To that end, a partial transmission input-output model was developed to capture the uniqueness of the Chinese market. Price control, market factors and technology substitution--the three main factors that...
Persistent link: https://www.econbiz.de/10009451249
As economy is growing, many problems occur, such as environmental problems. Scholars and government officials begin to focus on the corporate social responsibility (CSR). This paper is to study the relationship between corporate social responsibility (CSR) and Chinese economic development (ED),...
Persistent link: https://www.econbiz.de/10014367535