We find that individualistic chief executive officers (CEOs) are 50–60% more likely to make financial misstatements and are approximately twice as likely as other CEOs to have irregularities (i.e., material and fraudulent misstatements). We further document that this positive relation is...

The problem of corruption in socio-economic development has long been a focus of academics and practitioners. To address this concern in China, the 18th National Congress of the Communist Party of China instituted a new anti-corruption policy. In this paper, we examine the impact of this...

We use earnings forecasts from a cross-sectional model to proxy for cash flow expectations and estimate the implied cost of capital (ICC) for a large sample of firms over 1968-2008. The earnings forecasts generated by the cross-sectional model are superior to analysts' forecasts in terms of...