Equity carve-outs appear to accurately correlate with the peak in an overvalued stock market. We base this conclusion of market timing on four findings in a sample of 265 carve-outs undertaken by publicly traded parents between 1981 and 1995. First, the mean return on the value-weighted NYSE,...

We explore the importance of book and tax factors in initial public offerings using equity carve-outs undertaken by publicly traded parents. The advantage of such carve-outs over typical IPOs is that the book and tax positions of pre-IPO shareholders can be accurately estimated due to financial...

We find, as predicted, that the differential ability of accrual and cash flow components of earnings to help forecast future abnormal earnings and the persistence of the components results in the components having different valuation implications. We base our tests on Ohlson (1999) applied to...

This paper tests the sharply differing predictions that emerge in Ohlson?s (1995) model from two assumptions about other information v that is reflected in a firm?s equity market value but not in its current financial statements. We find that neither assumption cleanly fits the data. If v is...

We measure and calibrate the racial and ethnic densities (RAEDs) of executives in US public companies. We find that calibrating executive RAEDs against an economic benchmark that captures the historical demand for and supply of top BA/BS qualified proto-executive talent yields different...

This study examines the value relevance of financial statement data and non-financial statement information within and across the pre-IPO venture capital and post-IPO public equity markets. For a sample of U.S. biotechnology firms, I find that financial statements are highly value relevant in...

I estimate the ex-post NPV profitability and returns-to-scale of expenditures on Ramp;D, advertising and personnel intangibles for the universe of publicly traded U.S. firms. I report four main findings. First, the NPVs of expenditures on Ramp;D, advertising, and personnel activities have been...

We find, as predicted, that the differential ability of accrual and cash flow components of earnings to help forecast future abnormal earnings and the persistence of the components results in the components having different valuation implications. We base our tests on Ohlson (1999) applied to...

We separate the forecasted one-year-ahead stock return implied by an analyst's target price into two parts: the expected compensation for bearing risk, and analyst-claimed mispricing. We use the cost of equity disclosed by analysts in their reports for the former, and the difference between the...