This article examines the value of lead information by investigating the predictive power the automatic data processing (ADP) report has on nonfarm payroll employment data released by the Bureau of Labor Statistics (BLS) 2 days after the ADP. We find that updating a vector autoregression (VAR)...

Evidence on whether smoothing earnings creates value remains inconclusive. This article examines the role of market uncertainty in the relationship between corporate earnings smoothing and stock returns. We find that firms with smoother earnings are viewed favourably by stockholders. However,...