In a highly influential analysis, Lawrence, Minutti-Meza, and Zhang (2011), LMZ henceforth, report that statistically significant relations between a firm's choice of a Big N auditor and three audit quality metrics (discretionary accruals, cost equity capital, and analyst forecast accuracy) turn...

Burgstahler et al. (2002) evaluate special items, a component of earnings with time series properties that differ from recurring earnings, to determine whether the market correctly prices these transitory items. In addition, they investigate the implications of special items for future earnings...

A field report on the non-impact of the ASA Statement on Statistical Significance and P-Values on the broader research community. This article discusses the implications of a premier accounting journal’s dismissive response to a systematic application of the 2016 ASA Statement principles to...

This study examines the effects of social capital on firm voluntary disclosure. We find that firms headquartered in the U.S. counties with higher levels of social capital provide more voluntary disclosure than firms in the counties with lower levels of social capital. We further find that this...

Using returns to scale as a conceptual foundation, we explore how R&D-related earnings performance and earnings variability depend upon firm size. We find that the positive association between the level of future earnings and R&D intensity increases with firm size, and that the positive...

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>This analysis identifies a distinct immediate announcement period negative relation between earnings announcement surprises and aggregate market returns. Such a relation implies that market participants use earnings information in forming expectations about expected aggregate discount...