We investigate the relation between earnings predictability, information asymmetry and the behavior of the adverse selection cost component of the bid-ask spread around quarterly earnings announcements for NASDAQ firms. While we find an increase in the adverse selection component of the bid-ask...

We evaluate six commonly used free cash flow metrics in terms of their accuracy, bias, and ability to predict value using a sample of 6171 valuations covering the period 1988 to 2010. We find that free cash flow measured as cash distributed to claimholders, adjusted for accounting distortions...

Did banking sector reforms in India and the adoption of capital adequacy norms based on the Basel Capital Accord prompt Indian banks to understate their bad loans? This paper addresses this question by investigating whether Indian banks under provide for loan loss provisions and understate their...

We examine the impact of institutional quality on early stage and formal entrepreneurial activity and on knowledge spillovers. We use four institutional variables – the protection of property rights, business freedom, financial depth, and corruption as proxies for institutional quality....