We investigate whether non-GAAP earnings disclosures increase stock price crash risk. Consistent with the notion that non-GAAP reporting allows managers to downplay reported bad news in GAAP earnings and re-direct investors' attention to the more positive aspects of performance, our empirical...

This study assesses the relationship between the likelihood of future stock price crashes and conservatism-an accounting characteristic that leads to the undervaluation of accounting net assets relative to economic net assets. This undervaluation is achieved by less stringent verification...

This study examines the impact of other comprehensive income (OCI) on stock price crash risk. We find that the disclosure of OCI can reduce stock price crash risk. This association is robust to a series of robustness checks, including the use of different measures of crash risk, firm fixed...

Using a large sample of U.S. firms during 1964–2007, we find that conditional conservatism is associated with a lower likelihood of a firm's future stock price crashes. This finding holds for multiple measures of conditional conservatism and crash risk and is robust to controlling for other...

Using a large sample of U.S. firms over the period 1964–2007, we find that conditional conservatism is associated with the lower likelihood of a firm's future stock price crashes. This finding holds for multiple measures of conditional conservatism and crash risk and it is robust to...

This study examines the association between chief executive officer (CEO) overconfidence and future stock price crash risk. Overconfident managers overestimate the returns to their investment projects and misperceive negative net present value (NPV) projects as value creating. They also tend to...

At the peak of the financial crisis in October 2008, the IASB amended IAS 39 to grant companies the option of abandoning fair value recognition for selected financial assets. Using a comprehensive global sample of publicly listed IFRS banks, we find that banks use the reclassification option to...

The performance of analysts’ forecasts has attracted increasing attention in recent years. However, as yet, no empirical study has investigated the nexus between the analyst forecast dispersion (AFD) and excess returns surrounding stock market crashes in any depth. This paper attempts to fill...

In this study, we examine the predictability of firm-specific stock price crashes using modern machine learning techniques and develop a crash prediction model that utilizes both financial ratios and textual data from the Management Discussion and Analysis (MD&A) of 10-K files. We show that...

Does growth lead to stock price crashes? In this study, we find that total asset growth positively relates to future crash risk and the relationship is robust for various asset, liability, and equity components of the balance sheet. Consistent with the managerial empire-building incentive,...