We provide evidence that some managers delay the revelation of bad news using a coordinated strategy involving reported accruals and earnings forecasts. Specifically, we observe a correlated bias in contemporaneous accruals and management forecasts when both indicate higher, but not lower,...

Prior work suggests that firms targeted by contentious activist challenges respond with impression management, promoting positive images of their social performance to maintain audience support. In this paper, we propose that targeted firms face simultaneous incentives to downwardly manage...

This paper provides a review of research on financial derivatives, with an emphasis on and comprehensive coverage of research published in 15 top accounting journals from 1996-2017. We begin with some brief institutional details about derivatives and then summarize studies explaining when and...

Firms use derivatives for a variety of purposes including hedging, speculating, meeting or beating benchmarks, and smoothing earnings. However, poor disclosures have made it difficult for the investors to identify the motives behind and the economic consequences of firms' derivative use. We use...

Practitioners and academics widely suspect that managers engage in “big bath” reporting behavior as a form of earnings management, but conclusive evidence of this behavior has been difficult to document due to the inherently endogenous nature of reporting the large nonrecurring charges...

We employ a quasi-natural experiment to examine the effect of investor inattention on firms' voluntary disclosure. While prior research focuses on when managers make mandatory disclosures within a given quarter, we examine whether investor inattention influences what managers voluntarily...

Prior research finds that unrealized gains/losses on cash flow hedges are negatively associated with future earnings, and that investors and analysts fail to anticipate this association. These studies speculate that this mispricing is due to either poor derivatives disclosures or the accounting...

Prior studies find that delayed earnings announcements tend to communicate unfavorable news, and investors consequently react negatively when firms delay earnings announcements. However, these findings do not explain why investors discount delayed earnings, even after controlling for the...