The Taxpayer Relief Act of 1997 (TRA 1997) reduced the net operating loss (NOL) carryback period from three to two years, thereby creating a short term incentive effect due to the increased opportunity cost of not recognizing a NOL in the transitional fiscal year of 1997. Specifically, failure...

The Taxpayer Relief Act of 1997 (TRA 1997) reduced the net operating loss (NOL) carryback period from three to two years, thereby creating a short term incentive effect due to the increased opportunity cost of not recognizing a NOL in the transitional fiscal year of 1997. Specifically, failure...

Extant research argues that borrowing from financial intermediaries subjects managers to external monitoring. However, given managers' flexibility in choosing the type of debt financing, why would managers submit themselves to external monitoring? Recent theory points to the role of managerial...

Extant theory claims a firm's information environment impacts the choice between debt and equity financing. However, empirical evidence supporting this contention is limited. We evaluate this relation within the context of Regulation FD (Reg FD) which prohibited the use of selective disclosure....

This paper examines the relation between analyst coverage and whether firms meet or beat analyst earnings forecasts. We distinguish between whether a firm's reported quarterly earnings meet (i.e., equal or exceed by one cent) or beat (i.e., exceed by more than one cent) its consensus analyst...

This paper examines whether a country's corporate transparency environment, which includes the quality of accounting information, contributes to efficient resource allocation. Based on a cross-country study of 37 manufacturing industries in 37 countries, we provide three pieces of related...