We examine why, as a summary statistic, earnings is better than cash flows at explaining contemporaneous returns despite being a worse predictor of future operating cash flows. Several studies compare the ability of earnings and operating cash flows to predict valuation-related outcome variables...

Prior accounting research uses the width of management range forecasts as a measure of managers' uncertainty about future earnings. However, range forecasts do not provide any information about the likelihood that future earnings will fall within the forecast bounds. The absence of information...

We investigate whether economic bargaining incentives between suppliers and customers affect financial reporting decisions. We posit that firms with major customers will strategically classify certain costs as cost of goods sold rather than as selling, general, and administrative expenses in...

Job vacancy duration reflects the time a firm spends searching, selecting, and hiring for a job opening. Capturing vacancy duration using the creation and deletion dates of job postings by U.S. public firms, we examine the informativeness of vacancy duration for future firm profitability. We...

We examine whether managers convey more information via voluntary disclosure channels when standard-setters limit managers' discretion in GAAP. We estimate the extent to which standard setters limit managers' discretion by counting the number of times obligatory modal verbs are mentioned in the...