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...

The cointegrated-based pair trading crucially depends on two key parameters: the length of the formation period and the divergence signal (or opening trigger), which are generally arbitrarily or statistically determined in the literature. In this article, we perform a sensitivity analysis of the...

This study describes a comprehensive profitability analysis that introduces several novel ratios and decompositions. Key innovations relate to the separation and analysis of activities other than operating and financing, and, most importantly, to the decomposition of operating profitability....

This study generates out-of-sample predictions from training data to construct investment portfolios that are mean-variance optimized and rebalanced daily to assess gains from incorporating signals based on post-earnings announcement drift (PEAD), the earnings announcement premium (EAP), and...

Designated market makers (DMMs) are contractually obligated to increase liquidity provision when trading volume breaches a floor. Using this feature in a regression discontinuity design, we show that increased DMM participation facilitates price informativeness with respect to earnings news....

Purpose – The purpose of this study is to investigate whether the earnings surprise influences decision to make earnings announcements during or after the trading hours is influenced by the earnings surprise resulting from the difference between consensus earnings estimates and the actual...

We find that CEOs issue significantly more favorable management earnings forecasts (MEFs), relative to the prevailing analyst consensus, to boost stock prices when approaching performance evaluation end dates. The effect is more pronounced for firms with lower past stock returns and when award...

One of the earnings managements is classification shifting. Besides extraordinary and exclusive items, the companies can discontinue their operations as the classification shifting form. This research intends to prove and analyze the influence of discontinued operations and institutional...