We report the results of an experiment which shows that investors' earnings- and investment-related judgments are jointly influenced by their investment position (long versus short), the news valence of guidance issued by management, and the amount of ambiguity in the guidance. Prior research...

We report the results of an experiment which shows that investors' earnings- and investment-related judgments are jointly influenced by their investment position (long versus short), the news valence of guidance issued by management, and the amount of ambiguity in the guidance. Prior research...

Recent studies document that market participants react positively to the positive language sentiment or tone embedded in financial disclosures, and that investors' reactions to negative news are more muted with poor disclosure readability. However, while language sentiment and readability...

Auditors are the gatekeepers to the public securities markets and their independence is central to the effectiveness of auditors as gatekeepers. Our general interest is on independence and we investigate how financial and non-financial incentives affect choices made by an auditor-gatekeeper...

Based on the data of Chinese listed companies, this paper examines the impact of anti-corruption on accounting conservatism. We find that anti-corruption can significantly improve accounting conservatism, especially in companies with weak internal control, high proportion of large shareholders...

We design an experiment to examine the influence of prior audit experience on subsequent reporting decisions when auditors become managers of audited firms. In contrast to the independence issues that can arise when auditors and their clients are related by prior affiliation, we focus this study...

This article analyzes the role of information in building reputation in an investment/trust game. The model allows for information asymmetry in a finitely repeated sender-receiver game and solves for sequential equilibrium to show that if there are some trustworthy managers who always disclose...

We argue that the market for audit services closely resembles a common value procurement (seller's) auction, where auditors generate a private estimate of the actual cost of an audit engagement prior to quoting the client a price. Thus, we conduct a systematic examination of audit pricing and...

Information disclosure is important for the economic well-being of society. Furthermore, given various issues, such as disclosure related to corporate social responsibility and scientific communication between scientists and society, the state of information disclosure is closely related to...

We study how securities analysts influence managers' use of different types of earnings management. To isolate causality, we employ a quasi-experiment that exploits exogenous reductions in analyst following resulting from brokerage house mergers. We find that managers respond to the coverage...