Political science research finds that individuals exhibit partisan bias, which results in unduly favorable economic expectations when their partisanship aligns with that of the US president. We examine whether partisan bias is present in management earnings forecasts, where CEOs have strong...

We examine the economic impact of the 2020 student loan forbearance program on borrowers. We use detailed individual transaction data and a difference-in-differences methodology to uncover the effects of forbearance on financial behavior and labor market outcomes. Our results show that...

This paper examines whether owner-managers of small firms use their compensation strategically to change reported earnings. We identify an institutional setting, Denmark, in which the owner-manager has the discretion to shift compensation from salary to dividends and hence increase reported...

Academic research on loan loss provisioning and the earlier incurred credit losses (ICL) model has a long tradition in the literature. Academic criticism of the ICL was taken up by the Financial Stability Board after the financial crisis of 2018, leading to a fundamental revision of accounting...

This study examines the role of exposure to different beliefs and opinions in the decision making of institutional investors. We exploit geographic variation in social media connections and political ideologies to identify plausible variation in the extent to which institutional investors...

A significant proportion of sell-side analysts’ recommendation revisions are directionally inconsistent with their earnings forecast revisions. For example, analysts revise earnings forecasts upward (downward) while simultaneously downgrading (upgrading) the recommendation. Prior research is...

We examine whether managers stockpile excess inventory after experiencing natural disasters. Using major disasters in the U.S. between 1993 and 2018, we document that firms located within a disaster area stockpile excess inventory after experiencing a disaster. The effect is stronger when a...

Corporate disclosures increasingly utilize multimedia to assist investors in better comprehending information. This study investigates how nonverbal disclosures, specifically the quality of vocal delivery, influence real-time investment decisions. We measure the quality of vocal delivery using a...

We examine the role of manager emotions during earnings conference calls. We use a textual analysis and a validated psychology dictionary, the Plutchik’s wheel of emotions, to extract eight primary human emotions (joy, anticipation, trust, surprise, anger, sad, fear, disgust) for managers...

This study investigates the role of salient events on accrual-based and real earnings management activities. For people using availability heuristics, the salience of an event may temporarily increase perceived risk even though the actual risk does not change, and individuals making decisions by...