In this paper, we study the estimation and inference of the quantile treatment effect under covariate‐adaptive randomization. We propose two estimation methods: (1) the simple quantile regression and (2) the inverse propensity score weighted quantile regression. For the two estimators, we...

Theoretical research argues that numbers convey more precise information than words. Based on this work, we hypothesize that when managers provide disclosure with a greater proportion of quantitative information, information risk will decrease and firm value will increase. We offer three main...

To help consumers evaluate products that often differ along multiple dimensions, many online review platforms have started to implement multi-dimensional rating systems, wherein a user provides product ratings on multiple product dimensions, in addition to an overall product rating. In contrast...

Using the SEC’s 2004 decision to begin publicly disclosing its comment letters, we study the consequences of increased regulatory transparency on the banking industry. Because the SEC only issues comment letters to public banks, we exploit a difference-in-differences design to examine the...

We develop a method for estimating the private value of knowing the future realization of some financial statistic and then apply the measure to the familiar ratios arising from the Dupont decomposition of return on equity. The estimation is grounded in the standard rational expectations model,...

In this paper, we document 45 specific allegations related to audit deficiencies based on GAAS, as detailed in 141 AAERs and 153 securities class action lawsuits over the violation years 1978–2016. Next, we use these allegations to validate existing popular proxies of audit quality. Of all the...

We demonstrate the value of machine learning in accounting through a detailed examination of litigation risk, an important and frequently used estimate in the literature. We evaluate a comprehensive set of twelve machine learning techniques and benchmark their performance against the logistic...