This study tests two opposing views of institutional investors — monitoring versus short-termism. We present evidence that institutional investor stability is negatively associated with one-year-ahead stock price crash risk, consistent with the monitoring theory of institutional investors but...

This study examines whether religiosity at the county level is associated with future stock price crash risk. We find robust evidence that firms headquartered in counties with higher levels of religiosity exhibit lower levels of future stock price crash risk. This finding is consistent with the...

This study compares the pricing of credit risk information conveyed by accounting numbers under IFRS relative to local GAAP. We measure the price of credit risk by CDS spreads and focus on three fundamental accounting metrics that inform about credit risk: earnings, leverage and book value...

We examine whether financial and non-financial variables, separately and in tandem, are value relevant in explaining market returns, equity values and the degree of investment by sophisticated investors for a sample of drug development companies. Patent counts, number of collaborations and...

This study examines the private debt contracting relation between performance covenants and conservative accounting under asymmetric information. Asymmetric information is characterized by borrowers' proclivity to appropriate wealth from lenders to themselves. We find that accounting...

This study examines the association between the office size of engagement auditors and their clients' future stock price crash risk, a consequence of managerial bad news hoarding. Using a sample of U.S. public firms with Big 4 auditors, we find robust evidence that local audit office size is...

This paper rigorously develops and extends the Ball-Brown (1968) and Beaver (1968) measures of the information content of earnings from underlying primitives, using the asset pricing model of Vuolteenaho (2002). The standard Ball-Brown and Beaver measures of information content are obtained by...

The purpose of this paper is to model the sources and extent of the potential biases of Activity Based Costing in the context of product profitability decisions. In particular we investigate a common manufacturing setting--the batch scheduling of multiple (two) products on a single production...

This study empirically investigates the information dynamics of the Ohlson valuation framework. Single-period lagged linear autoregressive relationships among dividends, earnings, and book values of equity are estimated for a sample of stochastically stationary firms and are found not to support...

This study empirically documents that firms with large ratios of current capital expenditures to prior four-year average capital expenditures enjoy positive contemporaneous abnormal returns. It further documents that average capital expenditures across Compustat-covered U.S. corporations are...