Showing 1 - 5 of 5
Using a financial reporting and valuation model, we investigate the construct validity of Basu's (1997) asymmetric timeliness (AT) regression coefficient as a measure of conditional conservatism in corporate financial reporting. We predict that the AT coefficient will be positive even in the...
Persistent link: https://www.econbiz.de/10012971652
How much news is there in aggregate accounting earnings? I provide evidence that earnings changes at the stock market level are correlated with new information about not only expected future cash flows but also discount rates. A comprehensive investigation of the link to discount rates reveals...
Persistent link: https://www.econbiz.de/10013064376
Persistent link: https://www.econbiz.de/10010347396
What are the implications of major customer dependency, i.e., the degree of a supplier firm's dependency on its major customers, for external auditors? While the conventional view emphasizes the negatives of major customer dependency for client business risk, we find that suppliers with more...
Persistent link: https://www.econbiz.de/10012937960
We document a walk-down in GDP growth projections that is akin to that in sell-side analysts' earnings forecasts. While the walk-down in earnings forecasts has been generally attributed to the strategic interplay between corporate managers and sell-side analysts, professional macro forecasters...
Persistent link: https://www.econbiz.de/10012851730