Citing fear of legal liability as a partial explanation, prior research documents (1) managers' reluctance to voluntarily disclose management earnings forecasts, and (2) higher forecast disclosure frequencies in periods of bad news. We provide evidence on how management earnings forecast...

We examine the effect of intangible investment on earnings non-commonality, defined as the extent to which a firm’s earnings performance is determined by firm-specific factors versus market and industry factors. Such insight is important in determining the appropriate weighting of these...

Firms face a greater risk of lawsuits for overstated rather than understated earnings or net assets, suggesting conservatism can reduce firms’ expected legal costs. Because managers with legal expertise are more likely than other managers to recognize the legal benefits of conservatism, this...