We predict that managers of firms in countries where languages do not require speakers to grammatically mark future events perceive future consequences of earnings management to be more imminent, and therefore they are less likely to engage in earnings management. Using data from 38 countries,...

This study examines the role of financial reporting conservatism in mitigating under-investment problems. Recognizing that volatile cash flows increase the need to access external capital markets, and that agency conflicts and information asymmetry make external capital costlier than internal...

We predict that managers of firms in countries where languages do not require speakers to grammatically mark future events perceive future consequences of earnings management to be more imminent, and therefore, they are less likely to engage in earnings management. Using data from 38 countries...

Motivated by the international business literature that examines the interactions between political forces and business environments, we investigate whether and how political connections affect managers' voluntary disclosure choices. We show that compared to non-connected firms, connected firms...

This study examines cross-sectional differences in stock market reactions to the disclosure of internal control deficiencies under Section 302 of the Sarbanes-Oxley Act. We hypothesize that the market punishment for internal control problems will be less severe for internal control disclosure...

We examine positive and negative information transfers associated with management earnings and revenue forecasts. Positive information transfers are due to industry commonalities whereas negative information transfers are caused by competitive shifts. We argue that positive and negative...

Prior studies have found that stock returns around announcements of bond upgrades are insignificant, but that stock prices respond negatively to announcements of bond downgrades. This asymmetric stock market reaction suggests either that bond downgrades are timelier than upgrades, or that...

Using a sample of seasoned equity offerings (SEOs), we examine the relation between disclosure frequency and earnings management and the impact of this relation on SEOs' post-issue performance. We contend that firms with extensive disclosure are less likely to face information problems, leading...

Using firms' cash compensation data, we examine the empirical relationship between earnings management and the weight placed on accounting performance measure in compensation. Our results indicate that the weight on accounting income in compensation decreases as the tendency of using...

In 2007, the SEC eliminated the Form 20-F reconciliation requirement for cross-listed firms that prepare financial statements under IFRS (IFRS filers). We examine the effect of this elimination on investors' information acquisition decisions and how accounting information is used across multiple...