This paper provides evidence on corporate voluntary disclosure practices through an examination of the earnings-related disclosures made by a random sample 93 NASDAQ firms during 1981-90.' I find that, consistent with prior studies, occur infrequently (on average, one for every ten quarterly earnings announcements); good news tend to be point or range estimates annual earnings-per-share (EPS), while bad qualitative statements about current quarter's earnings; (unconditional) stock price response

We address the fact that accounting academics often have very different perceptions of earnings management than do practitioners and regulators. Practitioners regulators see as pervasive problematic—and in need immediate remedial action. Academics are more sanguine, unwilling to believe is actively practiced by most firms or does exist should necessarily concern investors. explore reasons for these perceptions, argue each groups may benefit from some rethinking their views about management.

We use Dealscan , a database of private corporate lending agreements, to provide large–sample tests the debt covenant hypothesis. offers several advantages over data available in previous studies, principally larger and more representative samples availability extensive actual detail. These allow us construct powerful which we find clear support for also these broad evidence on economic role covenants. that lenders set covenants tightly them as “trip wires” borrowers, technical violations...

It is well-established that the realized returns of ?growth? stocks have been low relative to other stocks. We show this phenomenon explained by a large and asymmetric response negative earnings surprises for growth After controlling effect, there no longer evidence stock return differential between Our more consistent with investors having naively optimistic expectations about prospects (e.g., Lakonishok, Shleifer, Vishny, 1994) than existence unidentified risk factors are lower Fama French, 1992).

ABSTRACT We investigate managers' decisions to supplement their firms' management earnings forecasts. classify these supplementary disclosures as qualitative “soft talk” or verifiable forward‐looking statements. find that managers provide soft talk with similar frequency for good and bad news forecasts but are more likely examine the market response always informative only when supplemented by statements, supporting our argument statements bolster credibility of

Corporate conference calls are large-scale telephone during which managers make presentations to and answer questions from various market participants, usually about earnings. In this paper, we sample 1,056 corporate made by 808 firms February-November 1995 provide evidence on three questions: (1) whether information stock (2) investors have equal access the provided these calls, (3) why of some hold while other do not. We believe research is important because managers' use has grown...

This paper provides evidence on firms that report long “strings” of consecutive increases in earnings per share (EPS). First, we find 746 strings at least twenty quarters since 1962, and show this frequency is much larger than would be expected by chance. We interpret as prima facie management. Next, document these enjoy abnormal returns average more 20 percent year during the first five years strings, are those reporting annual (but not quarterly) EPS. argue market premia, rapidity with...

Download This Paper Open PDF in Browser Add to My Library Share: Permalink Using these links will ensure access this page indefinitely Copy URL DOI

ABSTRACT Recent changes in technology and the media are causing significant how capital markets assimilate respond to information. We identify important themes disclosure literature use this as a framework discuss conference papers that appear volume. These examine managers’ practices being affected by technology, media, markets. While work makes progress, we continuing technological change emergence of new forms offer further opportunities for research on role

ABSTRACT An annual loss is essentially a necessary condition for dividend reductions in firms with established earnings and records: 50.9% of 167 NYSE losses during 1980–1985 reduced dividends, versus 1.0% 440 without losses. As hypothesized by Miller Modigliani, depend on whether include unusual items that are likely to temporarily depress income. Dividend more given greater current losses, less negative items, persistent difficulties. policy has information content knowledge firm dividends...

ABSTRACT We study events surrounding ChuoAoyama's failed audit of Kanebo, a large Japanese cosmetics company whose management engaged in massive accounting fraud. ChuoAoyama was PwC's affiliate and one Japan's largest firms. In May 2006, the Financial Services Agency (FSA) suspended for two months its role Kanebo This unprecedented action followed series that seriously damaged reputation. use these to provide evidence on importance auditors' reputation quality setting where litigation plays...