This study examines short-term market reaction to financial statement restatements conditional on the initial level of noise in a restated account. I find evidence suggesting that the initial degree of estimation of restated items is an important determinant of market reaction. Investors do not...

The standard hedonic model of durable assets is a special case of a more general model that contains two additive terms: (1) use value of the existing hedonic vector and (2) the value of the option to reconfigure hedonic characteristics. One empirical implication is that the two parts of value...