Prior research has documented that earnings announcements provide information not only about the announcing firm but also about other firms in the same industry. We document a stock market anomaly associated with this phenomenon of intra-industry information transfers by showing that the stock...

Prior research has documented that earnings announcements provide information not only about the announcing firm but also about other firms in the same industry. We document a stock market anomaly associated with this phenomenon of intra-industry information transfers by showing that the stock...

We seek to document errors that could affect studies of earnings management. The case of earnings management in response to the book income adjustment (BIA) of the alternative minimum tax (AMT) offers a unique laboratory because the incentives to manage book income downward in 1987 appear so...

We find that the negative relation between accruals and future abnormal returns documented by Sloan (1996) is due mainly to inventory changes. We propose three explanations for this result, derived from the prior literature, but find evidence inconsistent with all three explanations. To assist...

Contrary to the common perception that operating cash flows are better than accounting earnings at explaining equity valuations, recent studies suggest that valuations derived from industry multiples based on reported earnings are closer to traded prices than those based on reported operating...

Although much market-based accounting research is based on regressions of abnormal returns on contemporaneous unexpected earnings, many have despaired about the intrinsic ability of accounting earnings to explain stock returns. These regressions exhibit low R2, lower than expected coefficients...

Contrary to the common perception that operating cash flows are better than accounting earnings at explaining equity valuations, recent studies suggest that valuations derived from industry multiples based on reported earnings are closer to traded prices than those based on reported operating...

We examine six stock price anomalies using two sets of tests to determine the extent to which six anomalies a) represent market mispricing, or b) reflect premia for unidentified risks. Market mispricing is indicated if the anomalous returns are concentrated around subsequent earnings...

We examine six accounting-based stock price anomalies using two sets of tests to determine the extent to which the anomalies (a) represent market mispricing, or (b) reflect premia for unidentified risks. Market mispricing is indicated if the anomalous returns are concentrated around subsequent...