By employing the modified net buying pressure as a measure of informed option trading, this study tested whether option trading around quarterly earnings announcements is either directionally motivated and/or volatility motivated. We found evidence that is consistent with the idea that option...

We examine whether the Securities Exchange Act of 1934 increased the information content of corporate earnings disclosures. Prior research questions whether the Act improved disclosure quality but generally relies on long-window tests and yields mixed results. We focus on whether the Act...

We selectively review recent advancements in research on predictive models of earnings and returns. We discuss why applying statistical, econometric, and machine learning advancements to forecasting earnings and returns presents difficult challenges. In the context of these challenges, we...

Managers and investors face a coordination problem when they choose the relative importance of earnings and investments in their respective strategies. I study how the coordination risk (the risk that the manager focuses on one metric while investors give more importance to the other) influences...

A burgeoning literature shows that self-learning algorithms may, under some conditions, reach seemingly-collusive outcomes: after repeated interaction, competing algorithms earn supra-competitive profits, at the expense of efficiency and consumer welfare. However, these simulations results,...

Management earnings forecasts (MEFs) may reduce information risk by corroborating the inferences that lenders draw from their private communication with borrowers. Consistent with this idea, we find that among firms with a general policy of issuing MEFs, those providing MEFs in the six months...

This study used descriptive statistics, budgetary analysis, and stochastic profit function to analyze data collected from 120 catfish fingerlings producers in Edo State, Nigeria to examine the profitability and profit efficiency of their production. Results from the study show that catfish...

Business income constitutes a large and increasing share of income and wealth at the top of the distribution. We discuss how tax policy treats and shapes how businesses are organized and how they distribute economic gains to owners, with the focus on closely-held and pass-through firms. These...

This study examines the relation between penalties for non-financial regulatory violations and earnings restatements. Financial and non-financial corporate misconduct have been shown to be associated with one another through channels such as shared internal controls and corporate culture. Using...

Motivated by the structural shift in the relation between inflation and the output gap, we investigate whether the information content of aggregate earnings for inflation and economic growth changes over time. We find that during 1970–2001, aggregate earnings are positively associated with...