We examine whether financial and non-financial variables, separately and in tandem, are value relevant in explaining market returns, equity values and the degree of investment by sophisticated investors for a sample of drug development companies. Patent counts, number of collaborations and...

This study examines the private debt contracting relation between performance covenants and conservative accounting under asymmetric information. Asymmetric information is characterized by borrowers' proclivity to appropriate wealth from lenders to themselves. We find that accounting...

This study examines the association between the office size of engagement auditors and their clients' future stock price crash risk, a consequence of managerial bad news hoarding. Using a sample of U.S. public firms with Big 4 auditors, we find robust evidence that local audit office size is...

This paper rigorously develops and extends the Ball-Brown (1968) and Beaver (1968) measures of the information content of earnings from underlying primitives, using the asset pricing model of Vuolteenaho (2002). The standard Ball-Brown and Beaver measures of information content are obtained by...

The purpose of this paper is to model the sources and extent of the potential biases of Activity Based Costing in the context of product profitability decisions. In particular we investigate a common manufacturing setting--the batch scheduling of multiple (two) products on a single production...

This study empirically investigates the information dynamics of the Ohlson valuation framework. Single-period lagged linear autoregressive relationships among dividends, earnings, and book values of equity are estimated for a sample of stochastically stationary firms and are found not to support...

This study empirically documents that firms with large ratios of current capital expenditures to prior four-year average capital expenditures enjoy positive contemporaneous abnormal returns. It further documents that average capital expenditures across Compustat-covered U.S. corporations are...

This study evaluates the extent to which the asset valuation arguments raised by medieval post-Talmudic legal scholars are consistent with modern contingent claims analysis. In particular, this study evaluates the arguments proposed by these scholars in order to rationalize the Talmud's...

This study uses a homogeneous database of cross-sectional qualitative and quantitative data to analyze the relative performance of Just-in-time and non-JIT plants operating in the auto-parts and electronic components manufacturing industries. The multivariate tests show that JIT plants use...

We use the theory of large deviations to investigate the large time behavior and the small noise asymptotics of random economic processes whose evolutions are governed by mean-reverting stochastic differential equations with (i) constant and (ii) state dependent noise terms. We explicitly show...