We examine the effect of Regulation Fair Disclosure (hereafter Reg FD) on the timeliness of long-horizon management forecasts of annual earnings, especially those conveying bad news. We expect that managers are less timely in issuing bad news forecasts than good news forecasts prior to Reg FD...

We present evidence on the benefits of accounting conservatism of the target firm in a merger and acquisition transaction. The use of conservative accounting serves as a mechanism that reduces the likelihood of acquiring underperforming assets for the acquirer, making the target more valuable...

This study examines whether managers understate large negative earnings news in annual forecasts that are generally issued early when limited earnings information of the fiscal year is publicly available. I find that management forecasts of annual earnings conveying relatively large negative...

This study investigates whether investor sentiment is associated with behavioral bias in managers' annual earnings forecasts that are generally issued early in the year when uncertainty is relatively high. I provide evidence that management earnings forecast optimism increases with investor...

To shed light on the influence of interpersonal fairness on tax compliance, the California Franchise Tax Board conducted a field experiment to examine how efficiency of Interactive Voice Response (hereafter IVR) systems affects tax collection. We find that taxpayers calling the temporary phone...