We show empirically that analysts who display more consistent forecast errors have greater ability to affect prices, and that this effect is larger than that of stated accuracy. These results lead to three implications. First, consistent analysts are less likely to be demoted and are more likely...

When setting budgets, managers may place constraints on how resources can be used in an effort to mitigate opportunistic behavior by subordinates. These restrictions can affect the ability of the subordinate to succeed in the budgeted task, but may also have an unintended spillover effect on the...

We investigate the interest shown by rank-and-file employees in seeing their firm meeting Wall Street’s expectations. We find that those who currently work for firms that meet or marginally beat analysts’ forecasts experience greater job satisfaction, controlling for the underlying financial...

"This accessible Handbook provides an essential entry point for those with an interest in the increasingly complex subject of financial decision-making. It sheds light on new paradigms in society and the ways that new tools from private actors have affected financial decision-making. Covering a...

Firms located in communities in which people are, on average, more trusting enjoy some benefits in terms of the power of CEO contracts. We present two pieces of empirical evidence to support this claim: (1) higher average trust in a county is associated with "flatter" executive contracts and (2)...

Abstract: Financial decision making is an increasingly complex subject. New insights from academic research, new paradigms from society, and new tools from private actors affect the way financial decisions are made. To be exhaustive is beyond the reach of any handbook. This volume aims to offer...

This tutorial builds on the earlier work by Babich and Hilary (2019) and Babich and Hilary (2020) and updates the status of various applications of blockchain technology to supply chains. We present a revised framework for analyzing the value of blockchain applications, based on five strengths...

Do CEOs really matter? Do cross-sectional differences in firm performance and CEO pay reflect differences in CEO ability? Examining CEO departures over 1992-2002, we first find that the stock price reaction upon departure is negatively related to the firm's prior performance and to the CEO's...

This paper provides evidence that analysts who have predicted earnings more accurately than the median analyst in the previous four quarters tend to be simultaneously less accurate and further from the consensus forecast in their subsequent earnings prediction. This phenomenon is economically...

Prior evidence that higher-quality financial reporting improves capital investment efficiency leaves unaddressed whether it reduces over- or under-investment. This study provides evidence of both in documenting a conditional negative (positive) association between financial reporting quality and...