We assess the impact of the Sarbanes-Oxley Act (SOX) on discretionary accruals (DA) and real earnings management (REM) activities around CEO turnovers. Improved corporate governance post-SOX can either deter earnings management (the deterrence effect) or pressure CEOs to inflate earnings when...

Following CEO turnovers, US firms adjust real business activities to manage earnings downward (REM bath). This effect is most pronounced in firms with low levels of institutional ownership. REM baths early in CEOs' tenure can be confounded with legitimate adjustments to business activities....

The AICPA's Special Committee on Financial Reporting has urged disclosure of relevant forward-looking and non-financial information to supplement conventional financial statements. We conduct an experiment consisting of 20 laboratory security markets with eight participants each to assess the...

This paper investigates whether managers' presentation of special items within the financial statements reflects economic performance or opportunism. Specifically, we assess special items presented as a separate line item on the income statement (income statement presentation) to those...

Outsourcing has become a significant factor in the U.S. economy over the past two decades. Annual report disclosures made by a firm related to outsourcing are voluntary disclosures. Understanding the determinants and firm performance implications of initial outsourcing annual report disclosures...

We investigate managers' decisions to supplement their firms' management earnings forecasts. We classify these supplementary disclosures as either qualitative "soft talk" disclosures or verifiable forward-looking statements. We find that managers provide "soft talk" disclosures with similar...

The study aims at checking the impact on corporate governance mechanism on firm performance of NSE 200 companies by using the existing models that are available. The study reveals that Board Size, Board Meeting and Board Independence are positively influencing the market performance of the firm....

This research investigates the relationship between board gender diversity and firm financial performance in the context of a transitional economy characterised by an underdeveloped corporate governance system. Using a sample of 120 publicly listed companies in Vietnam covering a 4-year period...

This paper presents an empirical examination of the determinants of innovative capacity of Turkish firms. The sample consists of 215 domestically-owned firms and is confined to the period of 2005-2008. Innovative capacity is measured with patent and trademark applications. The results show that...