In this paper, we model two drivers which underlie the economic trade-off shareholders face in designing incentives for optimal effort allocation by managers. The first driver is limited managerial attention, by which we mean that performing one task may have an adverse effect on the...

In this essay, I wish to invite young scholars to learn, use, and contribute to accounting theory. In this invitation, I argue theory has lineage, is important and can be fun. Its lineage comes from the post-WWII scientific revolution in management education and research. Theory is important...

We construct a new numerical measure of earnings announcement surprises, standardized unexpected earnings call text (SUE.txt), that does not explicitly incorporate the reported earnings value. SUE.txt generates a text-based post-earnings announcement drift (PEAD.txt) larger than the classic PEAD...

We construct a new numerical measure of earnings announcement surprises, standardized unexpected earnings call text (SUE.txt), that does not explicitly incorporate the reported earnings value. SUE.txt generates a text-based post-earnings-announcement drift (PEAD.txt) larger than the classic PEAD...