How do firms repair their reputations after a serious accounting restatement? To answer this question, we review firms' press releases and identify 1,765 reputation-building actions taken by: (i) 94 restating firms in the periods before and after their restatement; and (ii) a set of matched...

Accounting studies often examine whether the relation between X and Y varies with a moderating variable, M, by including an interactive term, X×M, in a regression. We provide plain-English guidance on why, how, and when to use control variables (Z) in interaction tests. Simple descriptions and...

We investigate whether unpleasant environmental conditions affect stock market participants' responses to information events. We draw from psychology research to develop a new prediction that weather-induced negative moods reduce market participants' activity levels. Exploiting geographic...