Prior research shows that family firms have better earnings quality than non-family firms in common-law countries and highly developed markets. In contrast, we do not find a significant difference in the financial reporting quality between family and non-family firms in the context of a...

This study examines the extent to which financial statement disaggregation (FSD) affects syndicated loan terms in an international setting. We find that greater FSD is associated with more favorable syndicated loan terms and that such effect is more pronounced in countries with strong creditor...

This paper examines the role of mutual funds in enhancing financial reporting quality in China. Mutual funds are more sophisticated and influential than individual investors. Therefore, they are expected to be more effective at preventing executives from expropriating investors and manipulating...

Roychowdhury (2006) constructed the measure of abnormal production costs to detect overproduction behaviour, which is widely used as a valid proxy in real earnings management. However, there is little evidence about its validity. This study is intended to fill the gap by focusing on the measure...

Prior studies recognize that information transfers associated with a firm's earnings announcement occur due to shifts in industry's competition balance. In this paper, we examine whether market assigns a lower reward (greater penalty) to a firm meeting (missing) earnings expectations (therefore...

In this paper, we examine how the mandatory adoption of International Financial Reporting Standards (IFRS) affects ownership structure and debt covenants in the syndicated loan market. We hypothesize and document that the proportion of the loan retained by syndicate lead arrangers increases...

The paper examines whether firms are more likely to meet or beat analysts' expectations (MBE) when there are more rivals with non-negative earnings surprises. First, we find that after controlling for rival firms earnings information for the period, firms are more likely to meet analysts'...

This paper examines the role played by national-level versus city-specific industry audit experts in mitigating the information asymmetries between borrowers and syndicated loan lenders. Using the framework developed in Ferguson et al. (2003) and Francis et al. (2005), we document that lenders...

Prior studies indicate that warranty reserves present two major aspects: a contingent liability and an information signal about growth prospects. In addition, managers use warranty accounting as a tool of earnings management to meet or beat earnings targets. In this paper, we hypothesize that...

The paper examines syndicated loan market to study whether and how borrowers' meeting or beating analysts' expectations (MBE) have more favorable debt contractual terms. Using a sample of listed loan firms in Dealscan database during 1998-2009, we find that, as predicted, firms missing analysts'...