We document strong evidence of a declining relation between R&D and future profitability, which coincides with a number of important economic changes including a significant increase in R&D spending. We identify several contributors to this decline, including changes in the nature and riskiness...

We examine the disclosure of non-GAAP earnings information in quarters containing transitory gains to investigate whether the primary motivation for these managers to disclose non-GAAP earnings is to inform or mislead. In this setting, non-GAAP earnings are more informative than GAAP earnings,...

This paper presents a sales forecasting model and tests the model on a sample of firms in the retail industry. The model distinguishes between sales growth due to an increase in the number of sales-generating units (e.g. opening new stores) and growth due to an increase in the sales rate at the...

We investigate if high-ability managers are more likely to intentionally smooth earnings, a form of earnings management, and when they are more likely to do so. Although prior studies provide evidence that high-ability managers report higher quality earnings, the literature does not indicate...