We propose an alternative way of using accounting multiples to predict future returns. We define excess multiple as the difference between an accounting multiple and the warranted multiple based on a firm's fundamental value drivers. Firms with low excess multiples have higher one-to-three years...

We examine whether the previously documented positive association between fund family size and fund performance is affected by significant regulatory changes (i.e., Regulation FD, the Global Settlement (GS), and increased scrutiny as a result of trading scandals) that have occurred in the last...

Using Regulation Fair Disclosure (Reg FD) as a point of structural change in the flow of selective information between firms and mutual funds, we examine whether the positive association between fund performance and fund family size is a result of selective access to information. Using two...

This paper examines the performance consequences of cutting discretionary expenditures and managing accruals to exceed analyst forecasts. We show that firms that just beat analyst forecasts with low quality earnings exhibit a short-term stock price benefit relative to firms that miss forecasts...

This paper finds that the corporate bonds of firms with high accruals underperform corporate bonds of firms with low accruals. Our results show that an accrual measure that includes capital investments provides higher and more statistically significant underperformance than a measure that...

This paper investigates the relation between institutional ownership and board of directors' composition and the properties of management earnings forecasts. A firm's optimal disclosure policy is determined by a trade-off between costs and benefits of disclosure. Managers acting in their...

This paper provides evidence linking corporate governance mechanisms to higher bond ratings and lower bond yields. Governance mechanisms can reduce default risk by mitigating agency costs and monitoring managerial performance and by reducing information asymmetry between the firm and the...

In this study, we examine the role of restructuring charges in the existence and subsequent weakening of the widely documented accrual anomaly. We find that prior to 2003 the significant positive abnormal hedge returns experienced by accrual based strategies were influenced by a subset of firms...

In this paper we examine the differences in aggregate ownership of stocks held by passive equity funds and active equity funds and in the characteristics of stocks held by these funds. We find that holdings of passive funds do not mirror the holdings of active funds. There are systematic...