A vast literature following Hayn [1995] and Burgstahler and Dichev [1997] attributed the so-called “discontinuities” in earnings distributions around zero to earnings management. Despite recent evidence that these discontinuities are likely caused by other factors, researchers and teachers...

A vast literature following Hayn [1995] and Burgstahler and Dichev [1997] attributed the so-called 'discontinuities' in earnings distributions around zero to earnings management. Despite recent evidence that these discontinuities are likely caused by other factors, researchers and teachers...

The nature of the data we usually encounter in market-based accounting research is such that the results of the regression of market capitalization on financial statement data are driven by a relatively small subset of the very largest firms in the sample. We refer to this overwhelming influence...

I critically examine several of the methods used in the recent literature to estimate and compare the cost of capital across different accounting/regulatory regimes. I focus on the central importance of expectations of growth beyond the short period for which forecasts of future pay-offs...

The discontinuities at zero in the frequency distributions of reported net income (deflated by beginning-of-period market capitalization), deflated change in net income, I/B/E/S quot;actualquot; earnings, and analysts' forecast errors are the most widely cited evidence of earnings management. We...

We develop and implement a method for comparing the measurement error in estimates of the expected rate of return on equity. We combine the Campbell [1991] and Vuolteenaho [2002] return decomposition with the econometric method described in Garber and Klepper [1980] and Barth [1991] to infer...

I describe a model of earnings and earnings growth and I demonstrate how this model may be used to obtain estimates of the expected rate of return on equity capital. These estimates are compared with estimates of the expected rate of return implied by commonly used heuristics - viz., the PEG...

The focus of this discussion is on the possible effects of scale in regressions that have price (or value) per share as the dependent variable. My argument rests on the fact that this dependent variable may reflect no more than the choice by management of the number of shares outstanding....

The extant literature provides evidence that, for many SEC 8-K filings, there is a significant market reaction on the date of the event that led to the 8-K filing, on the days between the event date and the filing date and on the filing date. We address the question, who pays attention and who...