Previous research finds that EPS growth is difficult to predict and reasons that much of the observed variation in valuation multiples is due to mispricing (e.g., Lakonishok, Shleifer, and Vishny, 1994; Chan, Karceski, and Lakonishok, 2003; Israel, Laursen, and Richardson, 2021). We revisit these...

Chordia and Miao (2020) provide evidence that low-latency trading (LLT) improves the long-term informational efficiency of stock prices. This discussion raises two primary concerns with their analysis. First, the mechanism through which LLT enhances long-term efficiency is unclear. Second, CM's...

We use the IPO setting to provide evidence that accounting measures of valuation uncertainty combine with short-sales constraints to generate significant equity market mispricing. The IPOs that we predict to be most susceptible to overpricing in the immediate aftermarket have first-day returns...

A large body of empirical research in accounting investigates the causes and consequences of accruals quality, reaching numerous influential conclusions. Yet little work has been done to systematically evaluate the validity of the underlying measures of accruals quality. We evaluate these...

SEC rules require managers to reconcile their non-GAAP forecasts with the most directly comparable GAAP measure unless doing so would entail ‘unreasonable effort'. A significant and growing number of managers invoke the unreasonable efforts exception to justify the omission of comparable GAAP...

We propose a new set of citation metrics for evaluating the relative impact of scholarly research in accounting. Our metrics are based on current practices in bibliometrics and normalize citations by both field (accounting) and year of publication. We show that our normalized citation metrics...

Recent years have witnessed growing interest in corporate sustainability reporting. Yet existing research provides mixed and indirect evidence on the information content of such reports to investors. We examine the stock market reaction to the release of corporate sustainability reports. Our...

Distinguishing between recurring and transitory components of earnings is a critical task in financial statement analysis. Academics and quantitative investors often rely on measures derived from standardized financial databases in making this distinction. We use unobserved components modelling...