We investigate whether stock prices reflect the asymmetric persistence of accruals and cash flows resulting from conditional conservatism. Using the Mishkin (1983) test (MT), we provide further evidence on the earnings fixation explanation for the accrual anomaly. We also apply panel estimation...

This study explores a natural experiment that involves the change in the regulation of earnings forecast disclosures from mandatory to voluntary in firms' IPO prospectuses. Findings indicate a behavioural alteration with pessimistic earnings forecasts during the mandatory era turning optimistic...

We provide evidence that increased reporting frequency enhances the extent to which stock prices guide managers' investment decisions. Using a generalized difference-in-differences research design, we find the sensitivity of investment to stock price increased for Mandatory Adopters following an...