About half of managers' forecasts of annual earnings issued in recent years are updated regularly (i.e., updated every quarter), while only about 10% are not updated. Consistent with the dynamic disclosure theory that anticipation of future updates can affect earlier disclosure choices, we find...

We reexamine the relationship between accounting conservatism and the profitability and risk of acquisitions, by comparing acquisition-related profitability and risk before and after SFAS 142 (2001). SFAS 142 eliminated the periodic amortization of goodwill, replacing it with an annual fair...

This paper uses a new approach to examine whether income smoothing garbles earnings information or improves the informativeness of past and current earnings about future earnings and cash flows. We measure income smoothing by the negative correlation of a firm's change in discretionary accruals...

We investigate whether the market prices the change in net trading assets as an operating or non-operating activity or some mixture of the two, and whether this market pricing is consistent with the (fundamental) association of the change in net trading assets with future cash flows from...

There are mixed views about whether firm managers voluntarily disclose good news in a more timely fashion than they do bad news. Our study investigates this issue by inferring managers' strategic disclosure behavior from firms' stock returns in the earnings announcement vs. non-announcement...

Roll (1988) observes low R2 statistics for common asset pricing models due to vigorous firms-specific returns variation not associated with public information. He concludes (p. 56) that this implies quot;either private information or else occasional frenzy unrelated to concrete information.quot;...

We show that, contrary to popular belief, capital markets do not drive short-termism. By comparing public and private European firms in countries with different institutional infrastructures, we show that being listed in the stock market plays a positive role in a firm’s investment policies,...

Range forecasts have evolved to be the most common form of management forecasts. Prior studies typically use the midpoint to evaluate analyst reaction to range forecasts, implicitly assuming that analysts place equal weights on the upper and the lower bounds of management range forecasts. We...

This paper examines the relation between voluntary disclosure of financial statement line items accompanying, and insider trading around, quarterly earnings announcements. We find that investors' reaction to positive earnings news is temporarily heightened by financial statement line items...

Roll [1988] observes low R2 statistics for common asset pricing models due to vigorous firm-specific return variation not associated with public information. He concludes that this implies “either private information or else occasional frenzy unrelated to concrete information” [p. 56]. We...