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 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...

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 article uses a contingent-claims method to investigate how the provision of antidilution clause combined with the issuance of convertible preferred stock affect the entrepreneur's incentive to exert efforts to improve the prospects of the operation of an investment project. For plausible...

This study examines whether investment banking ties influence the speed with which analysts convey unfavorable news. We hypothesize that affiliated analysts have incentives to respond promptly to good news but prefer not to issue bad news about client companies. Using duration models of the time...