Conventional measures of risk in earnings based on historical standard deviation require long time series data and are inadequate when the distribution of earnings deviates from normality. We introduce a methodology based on current fundamentals and quantile regression to forecast risk reflected...

We explore the impact of cross-listing on the information environment of publicly traded companies. Compared to non-cross-listed companies, we find that cross-listed firms already have higher levels of information dissemination, as measured by the number of analyst, which increase after...

We study changes in financial policies following a regulatory shock to the accounting transparency of defined benefit pension plans. We estimate the hidden pension deficits of French companies subject to mandatory IAS 19 adoption in 2005 using disclosures of early adopters of IAS 19. We find...

This paper investigates the relationship between managerial equity ownership and the demand for outside directors in the U.K. corporate control process. In recognition of both the benefits (incentive-alignment effects) and costs (entrenchment effects) of managerial ownership, we propose and test...

If returns on two assets share common volatility components, the prices of options on the assets should be interdependent and the implied volatility spread should mean revert. We, first demonstrate, using the canonical correlation method, that there is a common component among the volatilities...

In this study we compare the timeliness and conservatism of reported earnings across the U.S. and U.K. GAAP regimes. We present a theoretical model of the differential speeds of recognition of good news and bad news. This suggests informative and relatively robust ways of measuring dimensions of...

This paper examines the association between the composition of the board of directors and earnings management activity for a period spanning the publication of the Cadbury Report (1992). Central to both the Cadbury Committee?s initial remit and its subsequent recommendations is the view that...

Corporate law defines an explicit responsibility for boards of directors in the financial reporting process. In so doing it raises the expectation that boards will constrain earnings management activity. This paper tests for evidence of an empirical association between the composition of the...

We use multivariate GMM models to show that book-to-market, size, and momentum capture cross-sectional variation in exposures to a broad set of macroeconomic factors identified in the prior literature as potentially important for pricing equities. The factors considered include innovations in...

The empirical relationships between stock prices/returns, earnings and book value are informative about characteristics of accounting quality: conservatism in measurement of earnings and book value; earnings persistence; and earnings timeliness. In this paper we analyse the comparative accounting...