This paper asks two questions. First, has the prevalence of expectations management to meet/beat analyst expectations changed in the aftermath of the 2001-2002 accounting scandals and the passage of the 2002 Sarbanes-Oxley Act (SOX)? Second, has the mix among the three mechanisms used for...

This paper investigates the decision by top-level executives of more than 1,200 public corporations to exercise large stock option awards in the period 1992-2001. We hypothesize and find that abnormally large option exercises predict stock return future performance. We then hypothesize that this...

The primary objective of this study is to evaluate empirically the ability of two cross-sectional models, the Cross-Sectional Jones Model and the Cross-Sectional Modified Jones Model, to detect earnings management vis-a-vis their time-series counterparts. The motivation follows because these two...

In this paper, we assess the degree to which ERCs reported in the literature may be attenuated due to measurement errors in the proxies for the earnings expected by the market. We use the cross-sectional dispersion of analyst forecasts as a variable to calibrate the measurement error inherent in...

The primary goal of this study is to evaluate the ability of the Cross-Sectional Jones Model and the Cross-Sectional Modified Jones Model to detect earnings management vis-a-vis their time-series counterparts by examining the association between discretionary accruals and audit qualifications....

This study tests whether the observed patterns in stock returns after quarterly earnings announcements are related to the proportion of firm shares held by institutional investors, a variable used by prior research to proxy for investor sophistication. Our findings show that the institutional...

Is it plausible that important corporate events such as write-offs, averaging around 20% of firms? market values, are associated with stock-price responses of less than 1%? We investigate this question by observing a lengthy period before and after the announcement date. We find, as suggested by...

The accounting method in SFAS No. 8 for restatement of a foreign operation's financial statements denominated in a foreign currency into the parent's currency equivalents for inclusion in the parent company's financial statements was several criticized by market participants and managers. Its...

This paper presents an empirical exploration of the relation between abnormal stock returns of U.S. firms with inter-national activities and fluctuations in the U.S. dollar. Consistent with previous research, we fail to find a signifi-cant correlation between abnormal returns of our sample firms...

This study further explores a structural break in the relation between stock returns of firms with foreign currency positions and lagged exchange rate changes (exchange rate exposure effect) documented in Bartov and Bodnar (l994). We examine whether changes in the financial accounting reporting...