This paper examines whether the sophistication of market investors influences management's strategy on discretionary accounting choice, and thus changes the persistence of discretionary accruals. The results show that the persistence of discretionary accruals for firms face with naive investors...

This paper focuses on the quot;stable factorsquot; underlying security returns with the sample of Taiwan stock returns. The simulation results show that the cross-validation factor analysis can detect the number of stable factors underlying the stock returns very accurately. With the...

Fama and French (1993) propose a three-factor model to describe the stock return behavior. However, it is challenged that stock returns are determined by firm characteristics rather than certain common factors. We are curious if a factor-based model with more factors can mitigate the effects of...

It is well known that initial public offerings (IPOs) are typically offered at prices lower than the transaction prices in the early aftermarket. However, the gap between the offer price and the aftermarket transaction price may be attributed to the underpricing of IPOs or the noisy trading...

Prior research on initial public offerings (IPOs) emphasizes on the underpricing of IPOs. For the long-run performance of IPOs, Ritter (1991) and Loughran and Ritter (1995) argue that the long-run performance of IPOs is worse than that of the overall market or that of the firms with the matched...