We predict and find that accounting restatements that adversely affect shareholder wealth at the restating firm also induce share price declines among non-restating firms in the same industry. These share price declines are unrelated to changes in analysts' earnings forecasts, but instead seem...

In this paper we investigate the relationship between non-professional investors' information choices and their portfolio returns. We also investigate the role investing experience plays in this relationship. We find that non-professional investors earn lower returns as their use of unfiltered...

We use buy and sell signals derived from insider trading disclosures to identify experimental-group cases in which decreases in earnings-related predisclosure information asymmetry have arisen through the use of the disclosures. For each experimental firm, each earnings-announcement date is...

This paper provides theory and evidence showing how accounting variables explain cross-sectional stock returns. Based on Zhang (2000), who relates equity value to accounting measures of underlying operations, we derive returns as a function of earnings yield, equity capital investment, and...

Performance is the outcome of work and it provides the linkage between the goals of an organisation and its effectiveness. Since there are various models of performance, this study seeks to empirically identify the most commonly used model by companies quoted on the 1st Tier of the Nigerian...

This paper provides evidence on firms that report long quot;stringsquot; of consecutive increases in earnings per share (EPS). First, we find 746 firms that report earnings strings of at least 20 quarters since 1962, and show that this frequency is much larger than would be expected by chance....

This article develops a consumption-based valuation model that treats earnings and cash flow as complementary information sources. The model integrates three ideas that do not appear in traditional valuation models: (i) earnings provide information about future shocks to cash flow; (ii) earnings...

This paper investigates two competing hypotheses for the accrual anomaly: investment/growth and persistence. Both investment/growth and persistence information in accruals are likely to vary cross-sectionally, depending on a firm's business model, a fact that generates different cross-sectional...

We document that Regulation Fair Disclosure has reduced differences in information quality between investors prior to quarterly earnings announcements consistent with the intent of the regulation. This reduction is driven by small firms and high technology firms, rather than the large firms...

Similar to a classic event study, this study examines market reaction to firms' earnings announcements. This study extends the examination to include a broad range of concurrent disclosure contained in earnings press releases: financial disclosure captured as accounting ratios; and verbal...