This paper examines how analysts incorporate other comprehensive income (OCI) and its components into their earnings forecasts. We first document that analysts’ one-year-ahead earnings forecasts are associated with OCI and OCI components having predictive ability; this suggests analysts (at...

We show that firms' Delta incentives can predict the market performance of their industry peers. When a small group of firms (leader firms) experiences substantial growth in Delta incentives, industry peers experience positive abnormal returns and abnormal improvement in fundamentals despite...

This study fi nds that a novel transformation of the idiosyncratic volatility (IVOL), the unit shocks of IVOL (US(IVOL)), has a strong negative relation with future stock returns even after controlling for IVOL itself and all major return predictors. We construct the US(IVOL) by scaling the...

Prior studies document politically-connected firms (PCFs) tend to have a higher probability of government bailout. This study finds that the government bailout guarantee, embedded in PCFs, deters the short sale activity. Informed short sellers view the guarantee as a higher expected cost of...

Prior theoretical studies on agency problems hold different opinions against empirical works on two questions: (i). Are CEOs incentivized to shelter good information? (ii). Are CEOs incentivized to evenly shelter firms' good and bad information? This paper answers these questions by...