We use computer-intensive techniques to study the informational properties of forward-looking disclosures in the MD&A sections of 10-K filings made with the SEC. We find that firms make more forward-looking MD&A disclosures when their stock prices have lower informational efficiency, i.e., when...

We examine whether cost stickiness is associated with value creation in mergers and acquisitions (M&A). We find that the acquirer's cost stickiness is negatively associated with the abnormal returns around the acquisition announcement, and deal synergies, and positively associated with...

We examine whether the properties of earnings forecasts – bias and dispersion are different across periods when macroeconomic forecasts are optimistic than non-optimistic, and whether this difference in analyst forecast optimism is stronger during recessionary periods. We find that the...

We use the residual-income valuation model to simultaneously estimate firm-specific implied long-term growth rate in abnormal earnings and cost of capital by relating earnings-to-price and book-to-market ratios in a linear fashion. This simple framework estimates investors' consensus beliefs...

We examine a model that incorporates two hidden-actions of the manager: a productive effort and a manipulative effort. The manager is paid a bonus based on the accounting report that the manager can manipulate. A downward restatement of the accounting report triggers lawsuits. The manager is...

We develop a firm-specific measure of the most important intangible asset - organization capital - and document that organization capital is associated with five years of future operating and stock return performance, after controlling for other factors. Thus, our organization capital measure...