Accounting estimates are measured with varying degrees of uncertainty, and financial statement disclosures provide investors with information about such uncertainty. In two experiments, I test investors' reactions to measurement uncertainty in accounting estimates. In the first experiment, I...

In general, investors respond favorably to firms’ ongoing ESG initiatives. In three experiments, we examine whether their reactions differ across the lifecycle of ESG initiatives. In particular, we predict and find evidence of an “ESG stopping effect.” Even when investors react similarly...

Firms facing financial distress must decide how to reduce costs, which often involves choosing between laying off some employees or reducing hours for a larger number. We investigate two questions related to this choice. First, how does the precision of a firm's performance measurement system...