We examine the specification and power of tests based on performance-matched discretionary
accruals, and make comparisons with tests using traditional discretionary accrual …

Accounting studies often encounter observations with extreme values that can influence
coefficient estimates and inferences. Two widely used approaches to address influential …

Consistent with the uncertainty of research and development’s future benefits, prior accounting
studies hypothesize and find a positive relation between research and development (R&D…

This paper studies The Netherlands' private sector self-regulation initiative (“The Peters
Committee”) to improve corporate governance practices. We examine the relation between firm …

Information externalities in capital markets occur when one firm’s disclosure affects the
valuation of another firm’s securities. Intuitively, information externalities are more likely to occur …

We extend prior research on the empirical properties of daily trading volume and methods
to detect abnormal trading volume in two ways. We compare the performance of a …

We study a relatively recent change in voluntary disclosure practices by management, namely,
the issuance of cash flow forecasts. We predict and find that management issues cash …

The test developed in Mishkin [1983] (hereafter, MT) is widely used to test the rational pricing
of accounting numbers. However, contrary to the perception in the accounting literature, the …

Short-window earnings response coefficients estimated from pooled time-series cross-sectional
regressions are systematically smaller than corresponding averages of firm-specific …

To provide evidence on the role macroeconomic uncertainty plays in managers' decision to
issue management earnings forecasts (MFs), this study develops and tests hypotheses …