Using a principal-agent setting in which the agent has a rich action space, we provide a novel framework for studying accounting measurement and aggregation. We show that the optimal contracting process can be decomposed into three stages: constructing unbiased estimates of items that the...

This paper examines a mixed data sampling (MIDAS) approach to accounting research. MIDAS regression models parsimoniously incorporate variation embedded in existing economic data that are observed at much higher frequencies than accounting data. The additional source of data variation creates an...

We dissect the portion of stock price change of the fiscal year that is recognized in reported accounting earnings of the year. We call this portion earnings recognition timeliness (ERT). The emphasis in our dissection is on empirical identification of two fundamental precepts of financial...

We dissect the portion of stock price change of the fiscal year that is recognized in reported accounting earnings of the year. We call this portion earnings recognition timeliness (ERT). The emphasis in our dissection is on empirical identification of two fundamental precepts of financial...