ABSTRACT Using an international sample of 2,113 initial coin offerings (ICOs), we explore the role disclosure and information intermediaries in unregulated crypto‐tokens market. First, document substantial cross‐sectional variation voluntary practices ventures seeking to raise capital through ICOs, such as extent released a prospectus‐type called white paper; releasing technical source code; communicating social media platforms. Second, find that, even with limited verifiability, higher...

Using an international sample of 2,113 initial coin offerings (ICOs), we explore the role disclosure and information intermediaries in unregulated crypto-tokens market. First, document substantial cross-sectional variation voluntary practices ventures seeking to raise capital through ICOs, such as extent released a prospectus-type called white paper; releasing technical source code; communicating social media platforms. Second, find that, even with limited verifiability, higher levels have...

ABSTRACT We hypothesize that, in weak‐institution countries, firms adjust the ‘timing’ of dividend payments by committing to distribute a percentage current earnings as dividends, revealing extent firm‐level agency conflicts future investors and facilitating raising external capital. Consistent with this hypothesis, we find on average, countries have higher speed adjustment ( SOA ) their target payout ratio, pay dividends earlier life cycle, are more likely disclose policy minimum earnings....

This paper examines the capital market consequences of government stress testing banks in European Union during recent global financial crisis. Theory suggests that announcement forthcoming public disclosure and eventual can induce changes information environment. Compared with propensity score matched control firms, I report tests generally elicited weak effects from measures asymmetry uncertainty for tested banks. also after 2011 test results, declined gradually but increased...

Abstract The literature on cash flow or earnings beta is theoretically well-motivated in its use of fundamentals, instead returns, to measure systematic risk. However, empirical measures based either log-linearizing the return equation clean-surplus accounting identity are often difficult construct. I construct simple betas various realized and expected find that an price-scaled expectations shocks performs consistently well explaining cross-section returns over 1981–2017. also examine...

We develop a measure of merger and acquisition (M&A) quality using accounting theory. This measure, implied return-on-equity improvement (IRI), quantifies the minimum in target’s post-acquisition return on equity (ROE) acquirer must attain to break even price. Employing large sample M&As from 1980 2018, we find that high IRI is, average, less attainable ex post predicts worse financial performance. The acquirer’s ROE growth over first three years after M&A is 11 percentage points...

ABSTRACT Theoretical work generally predicts a negative association between disclosure and risk premium, where additional reduces estimation or information asymmetry. However, empirical studies frequently report mixed results. Recent theoretical suggest that the premium is not necessarily always negative, could be positive (or less negative). For example, Dutta Nezlobin (2017) show can associated with higher when conditioned on firm's growth rates. Similarly, Johnstone (2016) shows signal...

Abstract We examine the predictive information content of management forecasts stock return volatility (i.e., expected volatility) that are disclosed in annual reports. find predicts near-term and longer-term earnings incremental to implied volatility, historical firm characteristics, alternative measures uncertainty. also reflects managers’ private about their firms’ future investment activities, such as mergers acquisitions R&D intensity. Finally, we power shrinks when managers have...

We use an accounting-based approach to link two primary measures of 'value' expected returns for countries: earnings-to-price (E/P) and book-to-price (B/P). document that when country-level earnings are less affected by accounting distortions related conservative uncertain investments, E/P is close a sufficient statistic returns. However, more distortions, B/P needed. find high countries are, on average, facing temporarily depressed current earnings, in part due their recovery future growth...

Using a large Bayesian VAR, we approximate the flow of information received by economic agents to investigate effects changes government purchases. We document robust evidence that informational insufficiency in conventional models explains inconsistent results across samples and commonly employed identifications recursive Structural VARs Expectational VARs. Furthermore, report heterogeneous components While aggregate purchases do not appear produce strong stimulative with output multiplier...

Prior studies generally question the credibility and usefulness of disclosed outcomes government stress tests banks in European Union during recent global financial crisis. In contrast, I document robust evidence that geographic distribution sovereign- credit-risk exposures EU stress-test results enables clear sorting strong weak on basis expected future performance sovereign spillover risk. Ex ante bank specific exposure measures developed using test disclosures have predictive information...

Prior studies on 'cash flow' beta primarily use return equity as the basis for estimating systematic risk. However, way a conservative accounting system deals with uncertainty makes less suitable to 'earnings' beta. I argue that since earnings are primary firm payoffs at risk, changes in expectations of more estimate In fact, find explanatory power cross-section monthly returns is sensitive measure used Using cross-sectional pricing tests over 1981–2017, estimates based able explain...

We develop an ex-ante measure of merger and acquisition (M&A) quality using accounting theory. The measure, implied return-on-equity improvement (IRI), quantifies the minimum in target's return on equity post to justify offer price. Consistent with greater earnings improvements being less attainable ex-post, we find that high-IRI acquirers have worse post-acquisition returns, lower returns shareholders debtholders, more frequent larger goodwill impairments. IRI's negative association...

Without formal regulatory oversight, can investors have confidence in so‐called initial coin offerings? Emmanuel De George , Thomas Bourveau Atif Ellahie and Daniele Macciocchi assess the evidence for against fast‐growing market

Theoretical work generally predicts a negative association between disclosure and risk premium, where additional reduces estimation or information asymmetry. However, empirical studies frequently report mixed results. Recent theoretical suggest that the premium is not necessarily always negative, could be positive (or less negative). For example, Dutta Nezlobin (2017) show can associated with higher when conditioned on firms’ growth rates. Similarly, Johnstone (2016) shows signal quality...

We use the ethnicity of CEOs across 31 countries as a proxy for their common inherited beliefs and values find an effect in CEO variable pay. that pay is not driven by effects corporate policy decisions, changes compensation are significantly larger when replaced with person from different ethnicity. Our estimated captures future time reference religion CEOs’ ancestors. Finally, we performance-firing sensitivities (i.e., sensitivity to being fired due poor performance).

We hypothesize that, in weak-institution countries, firms adjust the 'timing' of dividend payments by committing to distribute a percentage current earnings as dividends, revealing extent firm-level agency conflicts future investors and facilitating raising external capital. Consistent with this hypothesis, we find on average, countries have higher speed adjustment (SOA) their target payout ratio, pay dividends earlier lifecycle, are more likely disclose policy minimum earnings....

The literature on ‘cash flow’ or ‘earnings’ beta is theoretically well-motivated in its use of fundamentals, instead returns, to measure systematic risk. However, empirical measures earnings based either log-linearizing the return equation clean-surplus accounting identity are often difficult construct. I construct simple betas various realized and expected earnings, find that an price-scaled expectations shocks performs consistently well explaining cross-section returns over 1981–2017. also...

We take advantage of a 2017 change in tax rules the U.S. to re-examine whether CEOs are rewarded for luck. examine effect one-off gains and losses associated with deferred assets liabilities on CEO compensation around Tax Cuts Jobs Act (TCJA) 2017. Relative other years, we find that less visible firms compensated their more one-time windfall during TCJA-transition period. Further, evidence support pay asymmetry; were but not losses. The windfalls cannot be explained as sharing these all...