Using customer level data, prior marketing research has developed a micro or bottom up approach to link marketing activities with shareholder value. This study develops a macro or top down approach using longitudinal firm level data from publicly available financial statements. Test results show...

The theoretical basis of the current thinking on supplier-retailer communication is refined and an alternative model is offered and empirically tested. It is argued and empirically demonstrated that identification is an important mediator in bringing about relational outcomes in a...

In this paper we examine the validity of using one-year-ahead cash flows prediction tests as a substitute for the value relevance test of earnings. We show theoretically that the R2 of the cash flows prediction regression is contaminated by the presence of (1) noise in the cash flows and (2)...

Casual observations suggest that bidder managers sometimes pay more than the economic value of target in mergers and acquisitions. This paper provides two empirical findings associated with overpayments in acquisitions among publicly traded U.S. firms during the period of 2003-2011 using the...

This paper reports two empirical regularities regarding trading volume prior to earnings announcements. The literature suggests that discretionary liquidity traders postpone their equity trading until firms publicly announce earnings due to high information asymmetry before anticipated...

Prior research finds that taxable income is a more useful performance metric when book income quality is low (i.e., the “supplemental information role of taxable income”). We predict and find that taxable income's supplemental information role for future earnings growth increases over time...

We contribute to the current debate on the accounting treatment of operating leases by providing evidence from bond markets and private lending on the market recognition of the role of leasing in determining borrowing costs and credit ratings. Borrowing costs and credit ratings are less...

This paper examines the effect of tax-related material weakness in internal controls on investors' valuation of unrecognized tax benefits (UTBs). Firms are required to record a UTB when their uncertain tax positions are unlikely to be sustained upon tax return audit. While Koester (2012) finds...