Almost all studies on research and development (R&D) activity are based on US and British companies, and most of them show that this activity positively influences both stock returns and corporate value. This empirical study evaluates the effects of R&D on stock returns for a sample of listed...

This paper examines the relationship between earnings and its components with stock returns emphasizing on the earnings quality of listed firms in Tehran Stock Exchange (TSE). In order to do this, a sample of 230 listed firms in Tehran Stock Exchange was selected over a seven-year period (2003...

This study investigates how investors' reactions to one firm's earnings preannouncements are affected by the preannouncements of a peer firm. Our experimental results suggest that when two peer firms sequentially preannounce positive earnings news, investors' assessments of the target firm's...

This paper examines insider trading around first-time debt covenant violation disclosures in SEC filings, and is interesting from a research and regulatory standpoint for three reasons – delay and infrequency of a first-time disclosure, lack of attention to covenant disclosures by regulators,...

Most large companies voluntarily disclose information about their corporate social responsibility (CSR) activities. We use experimental markets to examine how managers' disclosures of a particular type of CSR, green investment, affect investors' bidding behavior. We find that, although in our...

This study examines the impact of Regulation G in 2003 and the issuance of Compliance and Disclosure Interpretations (C&DIs) in 2010 – on the reporting of non-GAAP earnings. The study finds that (i) both Regulation G and C&DIs are associated with an increase in the quality of non-GAAP earnings...

This study examines whether expected rate of return (ERR) manipulation is related to disclosure of pension asset allocation. FAS 132R(1), which requires firms to disaggregate the detailed categories of pension asset allocation, provides a natural experiment for studying the effect of enhanced...

Disclosure is of fundamental interest to accounting research. When the sign/magnitude of disclosed news is unclear, research infers the information content of disclosures using the ratio of return volatilities during disclosure event and non-event windows (Beaver, 1968). We show the ratio is...

We compare non-GAAP EPS in annual earnings announcements and proxy statements using hand-collected data from SEC filings. We find that proxies for capital market incentives (contracting incentives) are more highly associated with disclosure of non-GAAP EPS in annual earnings announcements (proxy...

We document negative stock returns and elevated trading volumes around executives' early option exercise disclosures post-SOX but not pre-SOX. This stock price reaction is incomplete, and the negative stock price drift is smaller post-SOX compared to pre-SOX. We also show effects of media...