We show that SEO firms engage in real activities manipulation, and the decline in post-SEO
performance due to the real activities management is more severe than that due to accrual …

In this study we investigate the usefulness of financial information to investors in comparison
to the total information in the marketplace. 1 Our evidence indicates that the usefulness of …

This paper uses a new approach to examine whether income smoothing garbles earnings
information or improves the informativeness of past and current earnings about future …

Roll [1988] observes low R 2 statistics for common asset pricing models due to vigorous firm‐specific
return variation not associated with public information. He concludes that this …

We examine the association between voluntary corporate disclosure and the informativeness
of stock prices. We measure corporate disclosure using the AIMR-FAF annual corporate …

Recent research finds that the prior period's worst stock return performers (losers) outperform
the prior period's best return performers (winners) in the subsequent period. This potential …

This study examines whether components of operating, financing, and investing cash flows
are differentially associated with annual security returns, as predicted by theoretical models …

Easton and Harris [1991] show that both earnings levels and changes (deflated by
beginning-of-period stock price) have explanatory power when they are included simultaneously in a …

This study investigates the effect of firms' adoption of SFAS No. 131 segment disclosure
rules on the stock market's ability to predict the firms' earnings, as captured by the forward …

This paper tests whether the stock market overreacts to extreme earnings, by examining firms'
stock returns over the 36 months subsequent to extreme earnings years. While the poorest …