We document that, when revising their short-term earnings forecasts in response to management guidance, analysts wishing to curry favor with management weight the guidance more heavily than predicted based on the credibility and usefulness of the guidance. This overweighting of guidance is...

We investigate whether ineffective internal control over financial reporting has implications for firm operations by examining the association between inventory-related material weaknesses in internal control over financial reporting and firms' inventory management. We find that firms with...

Earnings are an important input for equity investors’ valuation decisions. Managers and analysts increasingly report non-GAAP earnings on an ongoing basis, routinely removing recurring items, such as amortization and stock-based compensation, from GAAP earnings. We document that by 2019,...

We examine whether the strength of internal control over financial reporting (internal control) reduces the expropriation of resources from the firm by managers and controlling shareholders. Although we have ample evidence from prior literature that internal controls reduce errors in financial...

We document that, when revising their short-term earnings forecasts in response to management guidance, analysts wishing to curry favor with management weight the guidance more heavily than predicted based on the credibility and usefulness of the guidance. This overweighting of guidance is...

CFO resignations are becoming more common among publicly traded firms. We use sudden deaths of CFOs as an exogenous shock to CFO departures to examine how a CFO’s sudden departure affects firm financial reporting quality. We find that when a CFO dies suddenly, the likelihood the firm will...

We examine the association between board independence and the characteristics of non-GAAP earnings. Our results suggest that companies with less independent boards are more likely to opportunistically exclude recurring items from non-GAAP earnings. Specifically, we find that exclusions from...

We investigate how managers contribute to the provision of earnings guidance by examining the association between top executive turnovers and guidance. Although firm and industry characteristics are important determinants of guidance, we conclude that CEOs participate in firm-level policy...