While accounting research has shown that earnings response coefficients vary across firms many short-window accounting studies estimate earnings response coefficients using a pooled cross-sectional regression model which implicitly assumes that coefficients are identical across firms. We study...

Prior studies identify several motives for why firms release management earnings forecasts (MFs). A common feature of such studies is they pool MFs when drawing inferences about a specific motive. By ignoring the heterogeneous rationales managers have to issue MFs, pooling could lead to biased...

We exploit a novel feature of management cash flow forecasts (MCFFs) to investigate how managers' discretion over forecast precision, clarity, and verifiability affects the bias, quality, and stock price effects of such forecasts. Many MCFFs are issued with an equivocal definition of the cash...

Prior research generally argues that managers issue management earnings forecasts (MFs) to secure capital market benefits (i.e., reduce information asymmetry between managers and investors to lower a firm's cost of capital), to reduce the firm's litigation costs, or to allow managers to trade...

Accounting studies routinely encounter observations taking on extreme values. Such observations can influence statistical estimates (coefficient) and inferences. Our survey of the accounting literature documents that the two most common approaches used to address influential observations are...

We study the economic determinants of the information externality suppliers experience at the time of their customers' quarterly earnings announcements (QEAs). We measure the information externality as suppliers' stock price reaction to their customers' QEAs. We expect information externalities...

Under GAAP, SEC and exchange-listing rules, managers must disclose material information. We construct a disclosure specification incorporating managers' obligation to disclose material information and voluntary disclosure incentives. We demonstrate that tests of the incentives to voluntarily...