This study examines the extent to which incorporating current-period and/or cumulative real activities earnings management in default models enhances their predictability. Aiming at Altman's (1968) Z-score as well as Ohlson's (1980) O-score predictors, such adjustments help mitigate the...

This paper examines how incentive-based and behavior-based variables affect analyst recommendation revisions. Specifically, we use duration analysis to test analysts' underreaction to new information by isolating effects of incentives and cognitive processing biases (i.e., cognitive dissonance...

With the implementation of NASD Rule 2711 in 2002, each brokerage firm is now required to publicly disseminate the distribution of stock ratings in each research report. Hence, this paper investigates the relationship between the percentage of buy recommendations and probability of deciding to...