Using a system of three simultaneous equations, we test the predictions of Datar, Feltham, and Hughes 1991 and Hughes 1986 between auditor choice, earnings disclosures, and retained ownership in U.S. firms making initial public offerings of securities. Using a sample of initial public offerings...

This paper examines the association between institutional ownership and income smoothing through bank loan loss provisions for a sample of Japanese banks during the period 1991-1999. We find that as the percentage of institutional ownership of banks increases, income smoothing via loan loss...

Examines differences and determinants of errors in economic forecasting for foreign companies. Magnitude of forecast errors across 15 countries; Comparison of errors cross-sectionally and across time; Influence of firm size, forecast dispersion, industry and time period; Implications to financial...

This paper examines the role of sophisticated investors in pricing future earnings. Using the future earnings response coefficient (FERC) model recently developed by Ettredge et al. (2005), we test the effect of analyst following and institutional ownership on the informativeness of stock...