Research summary: I examine how acquisition motives relate to the distribution of post‐acquisition performance. argue that acquisitions motivated by operating synergies have potential experience greater gains than driven financial but are harder value and implement, making them more uncertain. Using SEC filings, conference calls press releases capture motives, find acquirers pursuing likely highly positive negative long‐term returns synergies. also geographic proximity targets soften...

This study empirically examines the relation between audit quality and auditors’ cognitive social skills. Using a novel data set of online job postings by accounting firms, we document substantial variation in stated demand for skills, suggesting that offices are not homogeneous their preferences such We find positive prevalence skills within an office’s postings. association is stronger engagements more complex or require greater coordination, particularly important where effective...

ABSTRACT We examine how resilient firms’ financial reporting processes are to the sudden death of a Chief Financial Officer (CFO)—a plausibly exogenous shock that allows us provide insights on role CFO while abstracting away from endogenous nature employment. find likelihood an adverse event—a delayed SEC filing or ex post restatement—doubles in year following event, average. The process is less more complex firms and with stronger internal controls highly educated employees. Sudden CEO...

We hypothesize that employee mobility between organizations will be lower when the organizations’ managers share affiliation ties. test this idea by examining interorganizational large corporate law practices. find a practice area is less likely to hire attorneys from rival leaders of two areas attended same school at time, our proxy for presence an tie. The negative relationship stronger hiring higher-ranked attorneys, and it driven class. Exploiting appointments new leaders, we sharp...

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ABSTRACT Gupta and Gerchak (2002) argue that different acquirers can arrive at equity valuations for the same target depending on their strategic intent. A reason acquirers' to vary, holding fundamentals constant, may be individual place weights underlying fundamentals. I examine this possibility using Burgstahler Dichev's (1997) theoretical framework. They relative importance of earnings book value depends expected adaptation, which is likelihood existing generating process will altered....

U.S. multinational corporations (MNCs) pay taxes upon repatriation of foreign earnings. This paper investigates whether MNCs facing higher tax costs are more likely to engage in avoidance strategies involving domestic acquisitions. We find that with levels both and Furthermore, the positive association between likelihood acquisitions is driven by stock-financed acquisitions, strong corporate governance strengthens this relationship. Our findings suggest a prevalent way for access cash...

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ABSTRACT Research documents price co‐movements, or “spillovers,” between focal firms and their peers at firms’ earnings announcements. We find that both signed absolute co‐movements focal‐ peer‐firm returns are significantly lower earnings‐announcement dates compared to other dates. Analytically, we demonstrate do not necessarily indicate common information; instead, measure the relative proportion of firm‐specific information in focal‐firm study three settings where transfers might be...

Research documents price comovements or “spillovers” between focal firms and peer at focal-firm-earnings announcements. We find signed absolute focal-firm peer-firm returns are significantly lower earnings-announcement dates compared to non-announcement dates. These results raise questions about the size of information externality financial reporting.

Based on Construal Level Theory, we hypothesize that CEOs who speak abstractly are more likely to be perceived as visionary than concretely, resulting in favorable perceptions about future performance by financial analysts. In a study based large dataset of conference calls and laboratory experiment assesses underlying mechanisms, find construal level is associated with greater vision, which turn leads forecasts. Implications for research practice discussed.

This paper is the first to investigate role of work-life balance in financial analysts’ performance and career advancement. Using a large sample Glassdoor reviews by analysts, we find significant non-linear relation between perceived analyst Specifically, when relatively low, an increase associated with better advancement; however, already high, further worse

I examine how the motivation for a merger affects distribution of performance. argue that mergers motivated by operating synergies have potential to experience greater gains than driven financial synergies, but are harder implement and value. Using previously unexamined SEC filings allow me explicitly measure whether is or find acquirers pursuing more likely highly positive negative post-merger performance outcomes pursue synergies. In addition, market participants’ expectations about...

CFO resignations are becoming more common among publicly traded firms. We use sudden deaths of CFOs as an exogenous shock to departures examine how a CFO’s departure affects firm financial reporting quality. find that when dies suddenly, the likelihood will experience adverse outcome than doubles. The effect death is larger for complex firms, firms with weak internal control structures, and less educated rank-and-file employees. In contrast, we demonstrate CEO have no discernible on quality...

We hypothesize that employee mobility between organizations will be lower when the organizations' managers share affiliation ties. test this idea by examining interorganizational large corporate law practices. find a practice area is less likely to hire attorneys from rival leaders of two areas attended same school at time, our proxy for presence an tie. The negative relationship stronger hiring higher-ranked attorneys, and it driven class. Exploiting appointments new leaders, we sharp...