This paper provides a new set of tests on the relationship between product market competition, information processing cost, and production of information by managers. The recent regulation regarding the mandatory adoption of XBRL (eXtensible Business Reporting Language) is a natural experiment...

We estimate the effect of information and ability spillovers on sell-side analysts' quarterly EPS forecast accuracy. Using a model that relates mean peer group ability along with the analyst's own ability to the analyst's forecast accuracy, we find that spillovers from peer analysts are large,...

Over the past 12 years, financial analysts across the world have been optimistically wrong with their 12-month earnings forecasts by 25.3%. This study may be the first of its kind to assess analyst earnings forecast accuracy at all listed companies across the globe, covering 70 countries. A...

This study examines how firms' voluntary disclosure decisions are influenced by product market competition. Using separate measures to capture different dimensions of competition, I show that competition from potential entrants increases disclosure quantity while competition from existing rivals...

Apart from the loss of time and money, disputes between public authority and private partner in China's public-private partnership (PPP) projects are destroying the government's image of PPP support and the private partner's investment confidence. This article aims to explore the main causes for...

Economic uncertainty is a powerful force in the modern economy. Research shows that surges in uncertainty can trigger business cycles, bank runs and asset price fluctuations. But where do sudden surges in uncertainty come from? This paper provides a data-disciplined theory of belief formation...

We investigate the pricing of temperature derivatives under weather forecasts modeled by enlarged filtrations. We also treat option pricing and optimal portfolio selection in temperature markets with future information. We finally prove an anticipative sufficient stochastic minimum principle and...

Prior research suggests that managers often fail to complete announced open market repurchase (OMR) plans due to uncertainty in the firm's future cash flows. Although high-ability managers should manage cash flows more effectively to complete share reacquisitions, there is little evidence to...

Facing limited attention constraints, financial analysts must strategically choose which information to pay attention to and which information to ignore when making earnings forecasts. I rely on rational inattention theory to develop and test hypotheses on factors that determine analyst...

We describe the evolution of forecasts in the run-up to recessions. The GDP forecasts cover 63 countries for the years 1992 to 2014. The main finding is that, while forecasters are generally aware that recession years will be different from other years, they miss the magnitude of the recession...