Showing 21 - 30 of 113
We examine the “confirmation” hypothesis, that audited, backward-looking financial outcomes and disclosure of managers' private forward-looking information are complements, because independent audit disciplines and hence enhances disclosure credibility. Committing to higher audit fees (a...
Persistent link: https://www.econbiz.de/10013133398
The post-earnings-announcement drift is a longstanding anomaly that conflicts with market efficiency. This study documents that the post-earnings-announcement drift occurs mainly in highly illiquid stocks. A trading strategy that goes long high-earnings-surprise stocks and short...
Persistent link: https://www.econbiz.de/10013134486
The post-earnings-announcement drift is a longstanding anomaly that conflicts with market efficiency. This study documents that the post-earnings-announcement drift occurs mainly in highly illiquid stocks. A trading strategy that goes long high-earnings-surprise stocks and short...
Persistent link: https://www.econbiz.de/10013134711
We examine the relation between mark-to-market (MTM) accounting for securities and information asymmetry among bank investors. Relative to historical cost, MTM incorporates more timely information in financial statements. The primary effect of more timely disclosure most likely is to reduce...
Persistent link: https://www.econbiz.de/10013113745
We examine the 'confirmation' hypothesis that audited financial reporting and disclosure of managers' private information are complements, because independent verification of outcomes disciplines and hence enhances disclosure credibility. Committing to higher audit fees (a measure of financial...
Persistent link: https://www.econbiz.de/10013118583
This study examines how takeover decisions are influenced by the quality of information in target firms' earnings. We show that bidders prefer negotiated takeovers in deals involving targets with poor earnings quality. Moreover, earnings quality and takeover premiums are negatively related in...
Persistent link: https://www.econbiz.de/10013100770
In this review, I discuss how accounting numbers are used in contracts aimed at mitigating agency problems between shareholders and managers and between shareholders and debtholders. I highlight the reasons why accounting numbers are widely employed in these contracts, even though share prices...
Persistent link: https://www.econbiz.de/10013086990
Financial reporting around the time of IPOs is consistent with listed firms reporting more conservatively than previously as private firms, consistent with the results in Ball and Shivakumar (2005). We hypothesize that IPO firms supply the higher quality financial reports demanded by public...
Persistent link: https://www.econbiz.de/10012721563
We investigate the role of accrual accounting in the asymmetrically timely recognition of unrealized gains and losses (i.e., prior to the actual realization of those losses in cash). This role of accrual accounting has not been directly recognized in the literature. We show that non-linear...
Persistent link: https://www.econbiz.de/10012721854
UK private and public companies face substantially equivalent regulation on auditing, accounting standards and taxes. We hypothesize that private-company financial reporting nevertheless is lower quality due to different market demand, regulation notwithstanding. A large UK sample supports this...
Persistent link: https://www.econbiz.de/10012722061