We investigate the impact of earning asset diversification on Chinese bank efficiency from by allowing for technology change. Regressions reveal that increasing the asset share of other earning assets is positively associated with bank efficiency. Decreasing the share of nonearning assets in...

We propose a simple framework for understanding accounting-based stock return regularities. A firm's accounting reports provide noisy information about hidden economic states that evolve according to a Markov process. In response to the accounting reports, a representative Bayesian investor...

We examine firms' financial reporting practices during the missing months that are induced by fiscal year changes and not covered by regular quarters. We find that firms tend to report much lower income for the missing months than for adjacent quarters, mainly by recording higher operating...