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Earnings Manipulation and Incentives in Firms

Friebel, Guido; Guriev, Sergei - C.E.P.R. Discussion Papers - 2005

additional payment. We show that it is easier for division managers to prove top management’s manipulations when the performance …We study the effect of earnings manipulation on incentives within the corporate hierarchy. When top management … of their own divisions is low. Earnings manipulation therefore undermines division managers’ incentives to exert effort …

Persistent link: https://www.econbiz.de/10005504644

Earnings Manipulation and Incentives in Firms

Friebel, Guido; Guriev, Sergei - C.E.P.R. Discussion Papers - 2005

Persistent link: https://www.econbiz.de/10005504726

Can we Automate Earnings Forecasts and Beat Analysts?

Ball, Ryan; Ghysels, Eric; Zhou, Huan - C.E.P.R. Discussion Papers - 2014

Can we design statistical models to predict corporate earnings which either perform as well as, or even better than analysts? If we can, then we might consider automating the process, and notably apply it to small and international firms which typically have either sparse or no analyst coverage....

Persistent link: https://www.econbiz.de/10011084355

Risk Sharing and Industrial Specialization: Regional and International Evidence

Sørensen, Bent E; Yosha, Oved - C.E.P.R. Discussion Papers - 1999

We provide empirical evidence that risk sharing enhances specialization in production. To the best of our knowledge, this well-established and important theoretical proposition has not been tested before. Our empirical procedure is summarized as follows. First, we construct a measure of...

Persistent link: https://www.econbiz.de/10005504254

Why is Long-Horizon Equity Less Risky? A Duration-based Explanation of the Value Premium

Lettau, Martin; Wachter, Jessica - C.E.P.R. Discussion Papers - 2005

This paper proposes a dynamic risk-based model that captures the high expected returns on value stocks relative to growth stocks, and the failure of the capital asset pricing model to explain these expected returns. To model the difference between value and growth stocks, we introduce a...

Persistent link: https://www.econbiz.de/10005504287

Euler Equation Errors

Lettau, Martin; Ludvigson, Sydney - C.E.P.R. Discussion Papers - 2005

Among the most important pieces of empirical evidence against the standard representative agent, consumption-based asset pricing paradigm are the formidable unconditional Euler equation errors the model produces for cross-sections of asset returns. Here we ask whether calibrated leading asset...

Persistent link: https://www.econbiz.de/10005504372

Relating Output and Volatility in a Model of International Risk-Sharing with Limited Commitment

Reichlin, Pietro - C.E.P.R. Discussion Papers - 2006

I study the constrained efficient allocations of a simple model of risk sharing and capital flows across countries assuming that each country cannot commit to fully repay its contract obligations. In the model, the degree of risk sharing and the amount of investment are interdependent. It is...

Persistent link: https://www.econbiz.de/10005504378

Informational Overshooting, Booms and Crashes

Zeira, Joseph - C.E.P.R. Discussion Papers - 1993

This paper offers an informational explanation for asset price booms and crashes. If market fundamentals change, but the length of this process of change is unknown, market participants try to learn about it by observing market outcomes. This learning generates a boom and a crash, which we call...

Persistent link: https://www.econbiz.de/10005504406

Minimum Price Variations, Time Priority and Quote Dynamics

Cordella, Tito; Foucault, Thierry - C.E.P.R. Discussion Papers - 1997

This paper analyses the impact of a minimum price variation (tick) and time priority on the quote dynamics and on trading costs when competition for the order flow is dynamic. It finds that convergence to competitive prices can take time and that the speed of convergence is influenced by the...

Persistent link: https://www.econbiz.de/10005504621

Adjustment to Target Capital, Finance and Growth

Ciccone, Antonio; Papaioannou, Elias - C.E.P.R. Discussion Papers - 2006

Does financial development result in capital being reallocated more rapidly to industries where it is most productive? We argue that if this was the case, financially developed countries should see faster growth in industries with investment opportunities due to global demand and productivity...

Persistent link: https://www.econbiz.de/10005504771