This paper tests whether the US stock market is myopic, in the sense that it places less than the appropriate weight on expected long-run earnings. The tests are made possible through reliance on a valuation model used by Ohlson [1995] that permits us, using only minimal assumptions, to make...

What incentives do managers face that might give rise to inefficient investments in leases? If managers make inefficient investments in leases, what economic consequences arise for those managers and their firms? We develop a model of expected investments in leased assets and use the residuals...

What factors enhance investment efficiency in leased assets, and what incentives give rise to over-investments? If firms over-invest in leases, what economic consequences arise? We develop a model of expected investment in leased assets, and use the residuals from the model as proxies for...

We investigate whether the measurement and reporting of comprehensive income in financial statements systematically affects commercial bank equity analysts' investment risk assessments and valuation judgments. In an experiment in which 80 buy side analysts specializing in banking and financial...

In this paper we review the academic evidence on earnings management and its implications for accounting standard setters and regulators. We structure our review around questions likely to be of interest to standard setters. Specifically, we review the empirical evidence on which particular...

Sell-side financial analysts commonly issue recommendations to buy, sell, or hold particular firms' shares. Hold recommendations do not provide investors with directional recommendations to change their investment positions. We develop and test predictions about whether users of analysts'...

Public and private banks differ along dimensions of control structure and capital market access. We develop and test predictions about the effects that these differences have on banks' profitability, growth, risk, and financial reporting. Our empirical results are generally consistent with our...

What incentives do managers face that might give rise to inefficient investments in leases? If managers make inefficient investments in leases, what economic consequences arise for those managers and their firms? We develop a model of expected investments in leased assets and use the residuals...

We investigate the risk relevance of the standard deviation of three performance measures: net income, comprehensive income, and a constructed measure of full-fair-value income for a sample of 202 U.S. commercial banks from 1996 to 2004. We find that, for the average sample bank, the volatility...

This is the Online Appendix for: Management of reported and forecast EPS, investor responses, and research implications (Management Science, Forthcoming). We provide here additional results relating to four issues discussed in the main paper: a) robustness analysis regarding prediction P3.2,...