Prior research documents that asset growth is negatively associated with future firm performance. In contrast, we show that growth financed by product market stakeholders (i.e., “operating growth”) is positively associated with future firm performance. Investors and security analysts...

We propose a simple framework for understanding accounting-based stock return regularities. A firm's accounting reports provide noisy information about hidden economic states that evolve according to a Markov process. In response to the accounting reports, a representative Bayesian investor...

SEC-mandated, machine-readable structured filings, or “as-filed data,” are an alternative source to Compustat for companies’ accounting data. Discrepancies between as-filed and Compustat data, potentially a result of Compustat’s standardizations, affect inferences about the existence and...