Leverage ratios, the ratio of a firm's debt to equity or assets, is a frequently used measure of firm risk, utilized by firms, analysts, and investors. However, pension and other post-retirement benefits (OPRB) are largely ignored in determining a firm's total liabilities. Similarly, pension and...

This paper examines whether there is information sharing between mutual funds and their auditors about the auditors' other listed firm clients. Using data from the Chinese market, we find that mutual funds earn higher profits from trading in firms that share the same auditors. The effects are...

Numerous influential critics and corporate managers allege that activist investors demand changes that increase short-term stock prices at the expense of long-term shareholder value (“short-termism”). Research to-date focuses on hedge funds. We provide new evidence by using a larger sample...

I explore the evolving role of accounting information in allocating capital. Accounting arose to control conflicts of interest in organizations (stewardship role). The industrial revolution spawned capital-intensive firms and public capital markets with dispersed shareholders to finance these...

This study examined the influence of agency conflict Type I (as represented by managerial ownership and institutional ownership), and agency conflict Type II (as represented by Control Rights, Cash Flow Rights, Cash Flow Rights leverage) on earnings management. A model was developed and tested...

We study the effect of institutional ownership on firm coverage by equity analysts. To account for the endogeneity of institutional ownership we employ instrumental variable approach. Acquisition for cash of a company from an institutional investor's portfolio serves as an exogenous shock to the...

We analyze how REITs managers use real earnings management to address issues of liquidity risk and increased coat of capital they face during seasoned equity offerings. We show that REITs managers engage in real earnings management instead of accrual earnings management to attract more...

We analyze how REITs managers use real earnings management to address issues of liquidity risk and increased cost of capital they face during seasoned equity offerings. We show that REITs managers engage in real earnings management instead of accrual earnings management to attract more...

The purpose of this study was to evaluate the effects of hybrid financial instruments in market-based accounting research. Thus, value relevance and timeliness models were used to determine how the accounting figures are assimilated by stock prices and returns (Ohlson, 1995; Aboody et al., 1999; Lopes &...

We examine whether domestic or foreign earnings contribute more to the variability of unexpected stock returns for a sample of U.S. multinationals and consider the role of investor sophistication. We use a variance decomposition methodology that measures the contribution of each earnings...