This study examines whether sell-side analysts have the ability to disseminate information consistent with anomaly prescriptions in China. I adopt 192 trading-based and accounting-based anomaly signals to identify undervalued and overvalued stocks. Analysts tend to give more (less) favorable...

We examine the information content of retail order flow relative to dark institutional and lit markets. We use multiple sources of retail order identification and account for the fact that market opacity affects order routing choices of both institutions and the brokers who sell retail orders....

Key Audit Matters (KAMs) are informative for future accounting outcomes. Using FINBERT, a deep learning model for natural language processing that allows human-like text comprehension, we show that goodwill-related KAMs are predictive for firms' future impairments. In fact, we find that using...

This paper studies the information advantage of forthcoming patents. We find that forthcoming patents can have a significant influence on credit ratings. We also find that forthcoming patents facilitate a reduction of the cost of borrowing after controlling for the credit ratings. Our findings...

Using unique administrative data on firm-to-firm payments and bank-to-firm lending, we investigate how lending to a firm is affected by same-bank lending to the firm’s customers and suppliers. We show that the supply of loans to a firm increases when the firm’s suppliers or customers have...

This study investigates the contribution of the limit order book to the price discovery process of blue-chip stocks traded on Borsa Istanbul. Using various price series, including the last trade price, best prices of the order book, and price steps beyond the best price levels, we measure the...

Using a large sample of collateralized loan obligation (CLO) portfolios, we examine the role of borrowers’ information quality in corporate loan securitization. We find that all else equal, CLO managers prefer loans from firms with high information quality. This effect is stronger when...

Prior research confirms regulators’ concern that special purpose acquisition companies (SPACs) exhibit elevated financial reporting risk (Kim, Park, Peterson, and Wilson 2022). In this study, we explore the auditor’s role in either elevating or reducing SPAC financial reporting risks....

Companies in Europe and the US are required to explain the significant risk factors they face in their annual reports. Prior studies provide mixed evidence of the informativeness of such textual risk disclosures, suggesting that these disclosures are an amalgam of both boilerplate and...

We examine whether being a hedge fund has any differential effect on the previously documented empirical relation between investment horizon and informativeness of institutional investors’ trades. We find that the positive and significant relation between short-term institutional demand and...