ground, we additionally develop a capital market oriented theory that explores a new source for the empirically observed cost …

We synthesize the growing literature on asymmetric cost behavior — a new way of thinking about costs and, by extension …, earnings. While the traditional cost behavior model describes a mechanistic relation between activity and costs, this … alternative view recognizes the primitives of cost behavior — resource adjustment costs and managerial decisions. These primitives …

response to changes in business activity level, family firms adjust their costs differently than non-family firms. That is …, family firms decrease costs more sharply upon a sales decline than they increase costs upon a sales raise of a similar …

forecast errors and accruals, which we label “managers' accrual-related forecast bias.” We build on extensive research which … between managers' earnings forecast errors and discretionary accruals, but no association between managers' earnings forecast … errors and nondiscretionary accruals. Furthermore, the association between managers' earnings forecast errors and …

In this study, we examine the strategic intraday and intraweek timing of management forecast announcements based on …, we find evidence that strategically timed bad news forecast announcements that are released after the market closes are …

We study how the quality of investors' information across horizons influences investment. In our theory, managers care … managers focus on current stock prices. Therefore, the quality of investors' information across horizons has real effects …

alternative measures of uncertainty. We also find that expected volatility reflects managers' private information about their … predictive power of expected volatility shrinks when managers have stronger incentives to manage earnings. Overall, we provide … forecast volatility …

We examine the relation between managerial ability and management forecast accuracy. We find that forecast accuracy is … positively associated with managerial ability in the case of sales forecasts. Specifically, more able managers are associated … with lower magnitude's forecast errors in the case of sales forecasts. Additional analysis finds that managerial ability is …