Prior research shows extant discretionary accrual models are misspecified when applied to firms with unusual performance. Nonetheless, research on earnings management and market efficiency frequently uses these models. We examine the specification and power of tests based on performance-matched...

Many claim that GAAP financial information has become largely irrelevant to explaining valuations. Core et al. compare financial information's value relevance for the New Economy stocks with other stocks. We supplement their analysis with new evidence on the economic determinants of the...

Using a large sample of U.S. stocks covering more than three decades, we empirically test common criticisms of and rationales for stock repurchases. Repurchases account for a tiny fraction of the trading volume in a typical stock, making their price impact too small to facilitate short term...