We re-investigate the market pricing of special items, with particular emphasis on how managers “frame” these non-operating earnings components via their inclusion or exclusion from “street” earnings, the earnings numbers that firms disclose in their press releases and that analysts...

We re-investigate the market pricing of special items, with particular emphasis on how managers “frame” them via their inclusion or exclusion from “street” earnings. When managers include the special items in “street” earnings (i.e., “street” = GAAP), the market overprices them,...

Although earnings persistence should have a nontrivial impact on CEO turnover decisions, prior studies have paid little attention to the role of earnings persistence in CEO turnover decisions. This study examines the effect of earnings persistence on the sensitivity (i.e., the negative relation)...

Income reported to shareholders (book income) and income reported to the U.S. Internal Revenue Service (taxable income) are alternative measures of U.S. corporate economic performance discussed in recent research, academic texts, and by U.S. legislators. In measuring economic performance,...