We measure managerial affective states during earnings conference calls by analyzing conference call audio files using vocal emotion analysis software. We hypothesize and find that when managers are scrutinized by analysts during conference calls, positive and negative affect displayed by...

With the adoption of Regulation Fair Disclosure (Reg FD), market behavior around earnings releases displays no significant change in return volatility (after controlling for decimalization of stock trading) but significant increases in trading volume due to difference in opinion. Analyst...

We provide evidence that analysts' stock-price judgments depend on (1) the method of accounting for a business combination, and (2) the number of years that have elapsed since the business combination. Consistent with business-press reports of managers' concerns, analysts' stock-price judgments...

We investigate whether clear disclosure of comprehensive income (CI) facilitates detection of earnings management by buy-side financial analysts and predictably affects their security price judgments. Because analysts and investors often must sort through voluminous footnotes and non-financial...

I examine the role of analysts in providing heterogeneous interpretations of public disclosures, specifically earnings announcements. Consistent with the predictions of Indjejikian's (1991) model, I document that there are relatively more heterogeneous interpretations in the forecast revisions...

The purpose of this paper is to examine the importance attached to revenue forecasts by firms and the market, and whether these forecasts are value-relevant conditional on earnings forecasts. We address two related questions. First, we examine whether the capital market reaction to earnings (and...

This paper unveils the rationality behind the widely criticized practice of consensus-beating, where companies try to report quarterly earnings equal to or slightly exceeding analysts expectations. In a simple theoretical model we show that a high-growth company can use active earnings guidance...

We examine the effect of Regulation FD on stock return volatility. Critics suggest FD has increased volatility by causing firms to (a) disclose less information, resulting in increased noise trading and pricing errors; or (b) substitute essentially continuous communication to the market through...

We ask whether the history of interactions between a firm and its analysts affects management's quarterly earnings forecast decision and analysts' subsequent earnings estimate revisions. We show that the history of their interactions not only reflects their individual incentives but is also used...

We investigate whether earnings guidance can reduce or eliminate post-earnings-announcement drift. We find that firms that provide earnings guidance simultaneously with their earnings announcements experience significantly less drift than other firms, consistent with our expectations....