Prior research finds that sell-side analysts are generally willing partners with company management in facilitating the consistent meeting or beating of earnings expectations. We examine analysts who demonstrate the opposite behavior: issuing an unusually optimistic earnings forecast at the end...

By combining investors' portfolio holdings with trading and commissions data, we analyze the determinants of IPO allocations. We distinguish among common explanations for investors' IPO profits: information revelation, quid pro quo arrangements (related to commissions), and post-IPO trading...

We investigate whether European banks use commission and fee income to smooth reported earnings or to persistently increase reported earnings as an income-increasing earnings management strategy. We find that European banks use commission and fee income to smooth reported earnings and this...

A rational miner may gain from withholding blocks and strategically timing the release to orphan the others' blocks, which questions the existence of honest majority and blockchain concensus. This paper reconciles the discrepancy between the absence of block-withholding attacks in practice and...

We show that the standard notion of residual income (RI) does not fulfill additive coherence. This gives rise to ambiguities and inconsistencies. The pitfall resides in the capital charge, which blends a non-market value with a market rate. We solve the problem by using a capital charge based on...

According to Shina, the condition of a uniform rate of profit in Sraffa’s prices, differently from the classical economists, does not lay on the operation of competition and the mobility of capitals in the economic system. Still, it would be a logical necessity of his system of prices. The...

Fundamentally, stocks are a good hedge against inflation if corporate profitability keeps up with inflation. Using monthly stock-market data covering over 151 years from 1871 to 2022, this paper analyzes the relationship between inflation and corporate profitability, measured by...

This paper examines whether sell-side analysts struggle to cope with macroeconomic uncertainty. We find that analysts issue more accurate earnings forecasts when facing higher economic policy uncertainty, which conflicts with the conclusions in the US. We provide a novel explanation for this...

The timing of earnings announcements and its effect on the market reaction has been studied since the 1970s. Research to explain patterns in announcement behavior focused on the ’Friday Effect’, intraday timing of earnings announcements, the impact of extraneous events, and firms’...

This paper examines the role of information spillovers within analysts’ portfolio in improving analyst forecast accuracy. We show a positive intra-portfolio information spillover effect, that is, the management earnings forecasts issued by large firms can reduce analysts forecast errors on the...