The current study examines whether firms that attempt to increase EPS to meet analyst forecasts through stock repurchases tend to pay a relatively higher price for their stock than firms that repurchase stock for other purposes, such as to benefit from temporary undervaluation of their stock....

This paper summarizes the growing body of literature on the unique aspects of real earnings management as compared with accruals earnings management. Unlike accruals earnings management, real earnings management involves real business activities, consumes resources, and potentially affects...

Purpose: The purpose of this paper is to examine whether analysts’ cash flow forecasts improve the profitability of their stock recommendations and whether the positive effect of cash flow forecasts on analysts’ stock recommendation performance varies with firms’ earnings quality....

We examine the effect of R&D REM, a form of real earnings management (REM) by cutting research and development (R&D) expenditures abnormally to meet earnings targets, on firms' subsequent innovation productivity measured by the scale and the novelty of patents. In the within-firm analysis, we...

We evaluate the performance of financial analysts versus naïve models in making long-term earnings forecasts. Long-term earnings forecasts are generally defined as third-, fourth-, and fifth- year earnings forecasts. We find that for the fourth and fifth years, analysts' forecasts are no more...

This study examines how information environment and industry concentration affect the relations between firms' financial disclosure quality and cost of capital. Information environment is proxied by firm size, and industry concentration is proxied by four-firm concentration ratio. The study...

Arora et al. (2014) provide evidence that the lack of precision in measurement of financial (i.e., level 1, 2, or 3) assets on the balance sheet of financial institutions appears to have affected short-term credit spreads more than long-term credit spreads during the global financial crisis...