Khan and Watts (2009) develop a firm-year measure of conditional conservatism, labeled C_Score, that builds on the Basu (1997) asymmetric timeliness (AT) measure. However, recent research documents an asymmetric relation between lagged earnings and current returns, indicative of bias in the Basu...

The executive compensation literature presumes that shareholders offer risk-averse managers stock options to entice them to take on more risk, resulting in riskier investment decisions and thus a greater return on investment. However, recent empirical work challenges this assumption, and...

This study examines the relevance of "Financial Accounting Standards (SFAS) No. 95" operating cash flow disclosures for assessing a primary component of firm risk, namely credit risk. We find that "SFAS No. 95" operating cash flows is an important determinant of credit risk, measured by debt...

type="main" xml:id="acfi12012-abs-0001" <title type="main">Abstract</title> <p>We investigate how the market's subjective estimates of autocorrelation in quarterly earnings vary with objective time-series estimates. Our results suggest that investors increasingly underestimate the correlation as the autocorrelation level...</p>

We hypothesize that connections with buy-side analysts provide a sell-side analyst with private information generated by the buy-side that enhances the quality of sell-side research. We proxy for these connections with the number of stocks at the intersection of stocks held in the portfolios of...

We examine how the provision of quarterly earnings guidance is affected by constraints on earnings management. We argue that costs of falling short of one's own guidance make managers reluctant to issue guidance without sufficient flexibility in their financial reporting system to manage...

This paper links academic accounting research on comprehensive income reporting with the accounting standard-setting efforts of the FASB and the IASB. We begin by discussing the development of reporting other comprehensive income and we identify a significant weakness in the FASB's Conceptual...

This paper develops a technique to infer the accuracy of analysts' forecasts of different components of earnings when databases contain forecasts of only bottom line (or limited component) earnings forecasts. We focus our analysis on three components - sales, operating profit percentage, and...

This paper compares Value Line and I/B/E/S analyst earnings forecasts in terms of accuracy, rationality, and as proxies for market expectations. Using more recent data and forming consensus forecasts from the I/B/E/S detail files, we reach different conclusions than Philbrick and Ricks [1991],...

This paper develops a taxonomy of research examining the role of financial analysts in capital markets. The paper builds on the perspectives provided by Schipper [Schipper, K. (1991). Analysts' forecasts. Accounting Horizons, 5, 105-131] and Brown [Brown, L. (1993). Earnings forecasting...