Prior research has shown that the accounting information available in the year just prior to filing bankruptcy is associated with the likelihood of filing for Chapter 11 protection. This information, however, is more predictive of bankruptcy for stressed firms than for non-stressed firms. We...

This paper considers estimation of parameters of diffusion terms from CIR models for estimation of stock prices. Feasibility of some known methods are tested for Monte-Carlo simulated data and for the historical prices, including individual stocks and stock indexes

This paper investigates the impact of Sarbanes-Oxley (SOX) on managers' earnings management choices (i.e., accrual management and real earnings management). Specifically, I investigate whether firms reduce their use of accrual management and increase their use of real earnings management...

Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangibles (FASB 2001) altered the treatment of goodwill by replacing the systematic amortization of goodwill with impairment testing. This change affected earnings in two ways by requiring many firms to take sizable...

This study reviews and summarizes the relevant findings of nearly two decades of accounting and finance research papers that focus on the links between the Sarbanes-Oxley Act (SOX) and the quality of reported earnings. This study, unlike numerous other studies, does not seek to address the broad...

Books reviewed: Industrial Location Economics, Philip McCann. The Color of Credit: Mortgage Discrimination, Research Methodology, and Fair-Lending Enforcement, Stephen L. Ross and John Yinger. Start-Up Factories: High-Performance Management, Job Quality, and Regional Advantage, Peter B....

Ever since Sarbanes-Oxley, a growing body of research has focused on the roles played by the audit committee. However, few theoretical studies exist to guide this research. In this study, we focus on the audit committee’s role in overseeing internal controls and the impact of whether or not...

In this paper, we exploit a corruption investigation that arose in Brazil, known as Lava Jato (Car Wash), in which eight of Brazil’s largest corporations (such as Petrobrás) were found to have paid more than 25 billion reals (5 billion dollars) corruptly to government officials and high-level...

If target prices reflect the true values of stocks, they should direct prices towards intrinsic values. But analysts’ optimism and use of less sophisticated valuation methods have been found to impede target price informativeness. We find that target price optimism has a positive effect on the...

We examine a set of bankrupt firms and test the relation between going concern opinions [GCs] and the emergence from bankruptcy. If the role of GCs is to alert stakeholders to the potential of financial failure, as prescribed by the auditing standards, then those investors and creditors who...