Showing 1 - 10 of 968
We use the Campbell (1991) return decomposition framework to reexamine the variation in the information content of earnings between profit firms and loss firms and over time. We show that current earnings surprises are more strongly correlated with the discount rate news component of returns for...
Persistent link: https://www.econbiz.de/10010531876
We present evidence of investors underreacting to the absence of events in financial markets. Routine-based insiders strategically choose to be silent when they possess private information not yet reflected in stock prices. Consistent with our hypothesis, insider silence following routine sell...
Persistent link: https://www.econbiz.de/10012936679
This paper examines whether financial statement information can predict future realized volatility incremental to the volatility implied by option market prices. Prior research establishes that option-implied volatility is a biased estimator of future realized volatility. I use an analytical...
Persistent link: https://www.econbiz.de/10013037345
Much of the research in law and finance reduces long, complex texts down to a small number of variables. Examples include the coding of corporate charters as an entrenchment index or characterizing dense securities complaints by using variables that capture the amount at issue, the statutes...
Persistent link: https://www.econbiz.de/10013226750
This paper investigates the informativeness and value relevance of analyst target prices in the context of mergers and acquisitions (M&A). Our results indicate that firms with high 12-month ahead target prices relative to current stock prices are more likely to become a takeover target and offer...
Persistent link: https://www.econbiz.de/10013237497
Aim of this study is studying relation of management earnings forecast error and information content of accruals. Thus, the sample consists of 71 companies were selected for the period 2003-2011. In this study discretionary accruals is used as independent variables. The results suggest that...
Persistent link: https://www.econbiz.de/10013102949
The extant research indicates that analysts' long-term earnings growth forecasts are especially optimistic for past winners, and have little predictive power to distinguish between high-growth and low-growth firms. In explaining the poor informational value of analysts' long-term earnings growth...
Persistent link: https://www.econbiz.de/10013081059
We study how the quality of investors' information across horizons influences investment. In our theory, managers care about how investment is impounded in current stock prices. Because prices imperfectly reflect investment’s value, they under-invest. However, they under-invest less when...
Persistent link: https://www.econbiz.de/10014236279
We analyze whether analysts sacrifice forecast accuracy for informativeness by examining: (1) the association between analysts' deviations from management guidance and earnings management; (2) the effect of the deviations on analyst forecast accuracy; and (3) the effect of the deviations on...
Persistent link: https://www.econbiz.de/10013036485
We ask whether option prices contain information on the likelihood and direction of jumps in the underlying stock prices. Applying the partial least squares (PLS) approach to the entire surface of the implied volatilities (IV), we show that option prices can successfully predict downward jumps...
Persistent link: https://www.econbiz.de/10012847745