We examine the relationship between the persistence of the accrual component of earnings and asset conversion cycle, i.e., the speed of accrual reversal. We argue that, as all accruals have to ultimately reverse, those reversing at a slower speed will exhibit more persistence. We use the...

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 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...

Prior accounting and finance literatures document a positive relation between R&D investment and future operating performance, implicitly assuming that the benefits from R&D are independent of other resources. However, the economics and strategy literature provides a framework that other...

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 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...