With the implementation of NASD Rule 2711 in 2002, each brokerage firm is now required to publicly disseminate the distribution of stock ratings in each research report. Hence, this paper investigates the relationship between the percentage of buy recommendations and probability of deciding to...

This study compares conventional linear and nonlinear accrual models to evaluate their ability to predict earnings management when applied to firm experiencing different performance levels. Linear models, which ignore the nonlinear relation between performance and accruals, result in measurement...

This study extends the literature of open-market share repurchases by detailing the role of the agency problem on the information content of repurchase announcements, the actual buyback, and the subsequent operating performance of repurchasing firms. It uses management ownership to measure the...

This study examines bias in recommendations following the enactment of the research analyst conflict of interest rules introduced around 2002. We label analyst recommendations as being seemingly unaffiliated when contributors are not underwriters but an acquirer or target firm of underwriters....

This article proposes a process through which a finance practitioner’s knowledge interacts with artificial intelligence (AI) models. AI models are widely applied, but how these models learn or whether they learn the right things is not easily unveiled. Extant studies especially regarding...

In this article, the nonparametric threshold autoregressive model for the Covered Interest Rate Parity (CIP) deviation is proposed. We provide a threshold estimation under the general equilibrium framework. The Keynes-Einzig conjecture based on market observation is verified. Within thresholds,...