This study investigates into the real consequences of earnings management by classification shifting via examining its effect on corporate investment efficiency. The underlying expectation is that the way of reporting different items of profit within the income statement should induce...

This Appendix reports results on several additional analyses conducted in order to lend support to and extend our baseline finding presented in the above-mentioned paper. These involve the use of an alternative method of measuring CS, an alternative method to measure investment opportunities,...

We examine the association between active options market trading and the (in)efficiency of corporate investment in terms of deviation from optimal investment levels. Past research considers the volume of options trading as contributing to firms’ informational efficiency. Investment efficiency...

We examine the effect of country level research and development (R&D) tax credits on optimal levels of firm-specific R&D investments. We use a sample of R&D active firms from 22 countries and find that such credits drive firms to invest towards optimal levels of R&D investment. This finding is...

We examine the impact of trademarks (TMs) on the initial public offering (IPO) valuation process of firms, their future performance, and capital market resilience. We find that TMs play an ambivalent role in under-pricing, depending on their quality. The existence of TMs tends to increase...