<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>Recent work suggests that institutional investors execute profitable trades based on private information about earnings and returns. We provide new evidence on the prevalence and sources of such informed trading by (1) testing for the creation "and" liquidation of positions based on...

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>Interpreting accruals as working capital investment, we hypothesize based on "q"-theory that firms optimally adjust their accruals in response to discount rate changes. A higher discount rate means less profitable investments and lower accruals, and a lower discount rate means more...

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>Prior research has documented that earnings announcements provide information not only about the announcing firm but also about other firms in the same industry. We document a stock market anomaly associated with this phenomenon of intra-industry information transfers by showing that the...