This study examines the extent to which incorporating current-period and/or cumulative real activities earnings management in default models enhances their predictability. Aiming at Altman's (1968) Z-score as well as Ohlson's (1980) O-score predictors, such adjustments help mitigate the...

This study explores whether taking into account variables for real earnings management improves specification of the default prediction model based on the Z-score methodology for Chinese listed companies. We demonstrate that the Z-score model proposed by Altman (1968) overestimates the survival...

Traditionally, the relationship between a firm's performance and its business strategy is studied using structured data taken from proxy statements and financial reports. However, there have been increasing efforts to explore the linkages between corporate outcomes and unstructured information,...

This study explores whether high-growth firms use accruals as a signal instead of a misleading device in seasoned equity offerings (SEOs). Using firms listed on the NYSE, AMEX, and NASDAQ from 1987 to 2010 as our sample and the subsequent 5 years of the sample firms to examine ex-post...

This study examines the impact of minority shareholder protection on the signaling effect of open-market share repurchases, the post-repurchase operating performance, and the subsequent investment decisions. When controlling owners retain tight control of their firms by insufficient equity...

This paper examines how incentive-based and behavior-based variables affect analyst recommendation revisions. Specifically, we use duration analysis to test analysts' underreaction to new information by isolating effects of incentives and cognitive processing biases (i.e., cognitive dissonance...

This study adds to the literature on estimating the probability of informed trading (PIN), which interests market microstructure empiricists, by proposing the q-adjustment to the process of estimating PIN. Due to challenges in accessing the data necessary for distinguishing between buyer- and...

This is a supplement for the paper (Tsaih, Lin and Ke, 2013, Computational Economics), entitled “An Abductive-Reasoning Guide for Finance Practitioners.” This original article proposes a process through which a finance practitioner's knowledge interacts with artificial intelligence (AI)...

The estimation of the probability of informed trading (PIN) may fail for firms with high levels of trading due to a computer's floating-point exception (FPE; i.e., over/underflow). A recent study proposes as a solution the use of scaled trade counts to estimate PIN for actively traded firms....