We present evidence that managers consider employee turnover likelihood in their accounting choices. Our tests exploit U.S. state courts' staggered recognition of the Inevitable Disclosure Doctrine (IDD), which reduces employees' ability to switch employers. We find a significant decrease in...

Regulation G requires all companies to quantitatively reconcile pro forma earnings with GAAP earnings. This paper provides three findings related to the impact of reconciliations on mispricing of pro forma earnings. First, prior to Reg G, we find that mis-pricing of pro forma earnings is limited...