We hypothesize that a CEO’s responsiveness to security analysts’ demands for information about the firm is influenced by the structure of the CEO’s compensation package. Our analysis is based on a sample of 469 CEO presentations to security analyst societies by 149 firms during the period...

Integral to strategic cost management is the choice of procuring flexible versus committed resources conditioned on demand uncertainty. Prior research shows that costs respond less to decreases than increases in sales activity when firms invest in committed resources. We analyze asymmetry in...

In the asymmetric cost behavior model, managers play an active role in determining cost behavior by adding or removing resources as activity changes. Cost stickiness occurs when managers deliberately retain slack resources resulting from a decline in sales activity between periods. Because both...

This paper examines how employee numbers change with changes in sales activity. The arguments that, when sales decline, managers retain employees with higher levels of human capital or who have closer relations with managers are important to the literature on cost stickiness. However, there is...

Previous literature investigates links between corporate social responsibility (CSR), earnings management (EM), and firm performance (FP) but has looked at pair-wise relations (CSR-EM, CSR-FP, and EM-FP) for one-way effects without considering endogeneity among the variables. We examine these...

In this study, we investigate the impact of countrywide adoption of IFRS on the liquidity of domestic versus international firms listed in a stock market. We consider two competing forces affecting liquidity from IFRS adoption: enhanced comparability of firms within industries that span...

Using event study methodology in a Canadian setting, this paper investigates whether the information content of earnings announcements increased for Canadian Venture Exchange (TSXV) firms and Toronto Stock Exchange (TSX) firms following mandatory adoption of international financial reporting...

Soliman (2008) finds that separating return on net operating assets (RNOA) into DuPont components, profit margin (PM) and asset turnover (ATO), improves prediction of future RNOA. Dickinson (2011) finds that a firm’s life cycle stage explains changes in future RNOA. Vorst and Yohn (2018) find...

Prior literature has studied firm uniqueness and its implications for capital market participants by investigating earnings uniqueness. We recognize that cost and revenue uniqueness provide separate insights about firm uniqueness because different forces drive firm-specific revenues and costs....