This discussion considers four aspects of the survey paper on empirical accounting choice research by Fields, Lys and Vincent: implications of the authors' selection of an expansive definition of accounting choice and their decision to classify this research by managerial motives; implications...

Bayesian learning implies decreasing weights on prior beliefs and increasing weights on track records, as the latter become more precise. We test whether investors learn about analyst predictive ability in this manner by examining market reactions to analysts' forecasts. Consistent with...