We contribute to the literature on Regulation Fair Disclosure (FD) in three ways. First, we provide evidence on whether FD has achieved its intended effect of leveling the information playing field by examining whether differences across investors' information quality prior to earnings...

We provide evidence on the determinants of the choice of an industry specialist auditor and the effect of this choice on cost of equity for a sample of firms that are audited by Big N auditors. We find that firms with more severe conflicts of interest between managers and shareholders are more...

We document that Regulation Fair Disclosure has reduced differences in information quality between investors prior to quarterly earnings announcements consistent with the intent of the regulation. This reduction is driven by small firms and high technology firms, rather than the large firms...

This study provides evidence on the effects of online trading on stock price and trading volume reactions to quarterly earnings announcements. We test for differences in stock price and volume reactions to quarterly earnings announcements between a period with a significant amount of online...

This study investigates how discretionary accruals affect earnings valuation (or price-earnings) multiples to provide indirect evidence on whether managers use their discretion over accruals to communicate their private information or to obtain private benefits. I find that earnings multiples...

This paper attempts to provide empirical evidence on some of the cross-sectional implications of the Feltham-Ohlson [1995] valuation model. Overall, the evidence supports the idea that stock prices can be viewed as a combination of stock (i.e., book equity and operating assets) and flow (i.e.,...

This study documents evidence on the choice of loan loss provisions by bank managers. In particular, we reexamine three hypotheses investigated by prior studies. First, we examine whether the 1990 change in capital adequacy regulations affects the relation between capital and loan loss...

This study investigates how discretionary accruals affect earnings valuation (or price-earnings multiples) to provide indirect evidence on whether managers use their discretion over accruals to communicate their private information or to obtain private benefits. The results indicate that...

Financial crises are typically marked by substantial increases in ambiguity where prices appear to decouple from fundamentals. Consistent with ambiguity-based asset pricing theories, we find that ambiguity concerns are more severe for firms with higher pre-crisis earnings volatility, causing...

We document that consistent patterns of sales growth that are incongruent with underlying fundamentals are followed by significant stock price reversals. In contrast, no stock return reversals are found for firms that achieve the same level of sales growth in an inconsistent manner. Furthermore,...