The objective of this study is to evaluate the extent to which financial-statement based proxies for tax risk (i.e. tax reserves) are associated with purchase price in the context of acquisitions. More specifically, we look at the target's tax risk (tax positions that increase the uncertainty of...

We show that a lack of investor trust affects the revision of cash flow expectations and delays the incorporation of accounting information into the stock price. To overcome investors' dependence on trust, managers can obtain external certification—either through credit ratings or by employing...

This study examines the market response to the 1999 announcement of a change in accounting for Funds from Operations (FFO) for Real Estate Investment Trusts (REITs). This change provides an increase in transparency in the accounting statements of REITs regarding the calculation of FFO. An...

While prior literature examines the role of auditors in the pricing of initial public offerings, little is known about the effect of auditor changes on the pricing of seasoned offers. Our examination of seasoned equity offerings shows that companies switching auditors prior to the offerings...

Der vorliegende Beitrag untersucht, ob der Mehrheitsaktionär einer Gesellschaft im Vorfeld eines Zwangsausschlusses von Minderheitsaktionären (sog. Squeeze-Out) versucht, die Kapitalmarkterwartungen negativ zu beeinflussen. Ein solches "manipulatives" Verhalten wird häufig in der juristischen...

The recent financial scandals, backdating problems, expensing of options and increasing use of restricted stocks have affected the cash dividend payout policies of firms, especially of those issuing restricted stocks. This research examines the accounting, financial and demographic variables...

This report updates and expands earlier studies to look at the profitability of $349.7 billion of buybacks executed from 2000 through early 2010 by a sample of 275 corporations. The sample companies, drawn mainly from the technology sector, enjoy total equity market value today of $945.6...

High-frequency trading has become a dominant force in the U.S. capital market, accounting for over 70% of dollar trading volume. This study examines the implication of high-frequency trading for stock price volatility and price discovery. I find that high-frequency trading is positively...

It is common practice in corporate valuation with discounted cash flow models to refer to the Capital Asset Pricing Model (CAPM) to estimate the rate of return required by investors. However, based on empirical studies of the US stock market, primarily Ibbotson and Morningstar (2008) and...

This paper examines the impact of Sarbanes-Oxley Act (2002) Section 404 disclosures regarding internal controls over financial reporting on investors' information systems (IS) reliability assessments and stock price predictions. Prior research shows that Section 404 disclosures signal...