For a sample of commercial banks during 1994 – 2008, we find that accumulated fair value adjustments for interest-bearing investment securities are positively associated with future interest income and total realized income from these investments. Additional tests reveal that accumulated fair...

We show that U.S. analysts alter their behavior in response to a randomly assigned shock that exogenously varies the timeliness and cost of accessing companies' mandatory disclosures in the cross-section of investors: analysts reduce the number of stocks they cover, issue less optimistic and...

We contribute to the research on the information content of earnings as it applies to the forecasting of economic activity across reporting models. We examine whether publicly available financial statement information is incrementally useful in forecasting confidentially reported taxable income....

Do accruals-based accounting earnings provide better information to investors about future operating cash flows than operating cash flows themselves, as predicted by FASB's conceptual framework? The most recent evidence (Nallareddy et al., 2020) is that operating cash flows, measured correctly...

This study examines whether companies' patents obtained had less impact on future operating cash flows during the period of most patent troll litigation, 2010 to 2014. We conduct analyses using cash flow predictive models and observations from companies that had consistently obtained patents...

This paper examines whether fair value adjustments included in other comprehensive income (OCI) can predict future performance in banks. We also examine whether the reliability of these fair value estimates affects their predictive value. Using a sample of bank holding companies, we find that...

In the Chinese securities market, with its characteristics of influence through personal relationships (Guanxi) and underdeveloped standards of law and enforcement, can independent directors play the supervisory role expected by securities regulators? In this study we use the degree of precision...

The Securities and Exchange Commission (SEC) issues comment letters suggesting revisions to firms' tax disclosures with the goal of improving the informativeness of these disclosures. I examine if SEC-prompted revisions to firms' tax disclosures are associated with changes in the informativeness...

We examine the adoption effect of ASC 606 on revenue informativeness, analyst forecast dispersion, and forecast errors. We find that the adoption of ASC 606 is associated with increases in revenue informativeness but decreases in analyst forecast accuracy and consensus. Such adoption effects are...

We examine how financial analysts use the information contained in TCFD aligned climate change disclosures in their forecasts, using firm-level textual climate change disclosures. The results show that climate change disclosures are associated with reduced forecast error and dispersion. This...