This study examines whether analysts' forecast revisions exhibited increased herding behavior following the adoption of Regulation Fair Disclosure. A recent model by Arya, Mittendorf, and Narayanamoorthy (2005) projects that one potential consequence of Regulation Fair Disclosure might be...

We examine conditional accounting conservatism (Basu, 1997) of UK firms cross-listed in the US. More specifically, we compare the degree of conservatism for UK cross-listed firms that raise equity capital versus conservatism of companies that do not raise equity capital. We expect that equity...

Nonaudit services performed by auditors for their audit clients have long been a focus of concern for regulators. The SEC has mandated disclosure of fees for both audit and nonaudit services in order to provide investors with a more transparent representation of the auditor-client relationship....

We examine the effect of the use of fairness opinions by acquirers on acquirers' short-term market performance. Our paper is the first to examine the effect of using fairness opinions on acquirers' abnormal returns around merger announcements. We hypothesize that acquirers purchase fairness...

We examine whether conflicts of interest with investment banking and brokerage induce sell-side analysts to issue optimistic stock recommendations and, if so, whether investors are misled by such biases. Using quantitative measures of potential conflicts constructed from revenue breakdowns of...

We recently conducted a comprehensive survey that analyzes how senior financial executives make decisions related to performance measurement and voluntary disclosure. In particular, we ask CFOs what earnings benchmarks they care about and which factors motivate executives to exercise discretion,...

We investigate if the SEC's mandated disclosure of fees for audit and nonaudit services affected the market's perception of auditor independence and earnings quality. Following the initial fee disclosures, we find that the market valuation of quarterly earnings surprises (earnings response...

This paper models firms' choices between alternative means of presenting information, and the effects of different presentations on market prices when investors have limited attention and processing power. In a market equilibrium with partially attentive investors, we examine the effects of...

This paper examines the trading volume reaction to the reconciliation of IAS-based earnings to U.S. GAAP on Form 20-F filed during the period of 1995-2001. The sample includes all non-U.S. firms that use IAS as their primary reporting standards and reconcile their earnings to U.S. GAAP in their...

We contribute to the literature on Regulation Fair Disclosure (FD) in three ways. First, we provide evidence on whether FD has achieved its intended effect of leveling the information playing field by examining whether differences across investors' information quality prior to earnings...