This paper is concerned with the allegation that fair value accounting rules have contributed significantly to the recent financial crisis. It focuses on one particular channel for that contribution: the impact of fair value on actual or potential failure of banks. The paper compares four...

This paper investigates whether and how financial restatements affect the market for corporate control. We show that firms that recently filed financial restatements are significantly less likely to become takeover targets than a propensity score-matched sample of non-restating firms. For those...

In this paper we examine whether sustainability characteristics of stocks and bonds affect asset allocations of wealthy retail investors. Using a large proprietary dataset of a private bank with monthly investment holdings of European private wealth investors, we document significantly larger...

This paper examines the size-effect in the German stock market and intends to address several unanswered issues on this widely known anomaly. Unlike recent evidence of a reversal of the size anomaly we document a conditional relation between size and returns. We also detect strong momentum...

In this paper we focus on fair value measurements in the Financial Crisis and its (continuing) aftermath. We consider different ways of measuring fair value; and we use the experience of economies under stress, and where markets deviate significantly from textbook models of symmetric information...

This study is the first to analyse managers' voluntary supplementary disclosures on insider trade filings with the SEC. Based on the content of the disclosures, we are able to distinguish between discretionary and nondiscretionary sales. We document significantly negative abnormal filing returns...

This study finds that pro-forma earnings forecasts by bidding firms during acquisitions are associated with a higher likelihood of deal completion, expedited deal closing, and with a lower acquisition premium − but only in stock-financed acquisitions. Analysts also respond to these forecasts...

This paper presents evidence from a global survey of nearly 700 investors and companies on the materiality of climate risk for financial reporting. We argue that current disclosure regulation likely requires the disclosure of climate risk on the basis of materiality considerations based on three...

Managers expend significant time and effort preparing disclosures about firm performance and strategy. Although prior literature has explored how variation in the style and presentation of disclosures impacts investors' perceptions of firms, little is known about how firms actually create these...