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We examine the relation between managerial ability and earnings quality. We find that earnings quality is positively associated with managerial ability. Specifically, more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations.(More)
Comments Welcome. † We gratefully acknowledge the helpful comments from two anonymous reviewers, We are grateful for financial support received for this project from AFAANZ and the Australian National University and to the NYSE and the NASDAQ for providing some of the short-interest data used in this paper. All errors remain our own responsibility.(More)
We investigate factors expected to be associated with the strength of comovement between aggregate prices and measures of fundamental value, where fundamental value is measured using accounting and analyst inputs (hereafter, fundamentals). We document significant time-series variation in the strength of comovement between aggregate prices and fundamentals.(More)
We investigate a possible weakness of measuring assets using historical cost. Our results suggest that an economically significant portion of the return on net operating assets reported by firms with older assets is an artifact of historical cost accounting rather than superior economic performance. We document that this feature of historical cost(More)
We investigate whether time-series variation in consumer confidence affects the long-run association between prices and accounting based measures of fundamental value (hereafter, fundamentals). We estimate the components of consumer confidence related to expected growth and investor sentiment. We find a significant role for both expected growth and investor(More)
Heat stress in feedlot cattle is known to reduce their performance. The challenge comes in determining reliable predictors of current and near-future changes in thermal status and performance. A 42-d study, using crossbred (Bos taurus) steers was conducted during summer months (July through August) to identify best environmental determinants of rumen(More)
We empirically examine the usefulness of (i) forward-looking accounting fundamentals, and (ii) 'other prospectus information' variables that prior literature suggests are value drivers, in the valuation of Australian Initial Public Offer (IPO) firms. We begin by examining the extent to which IPO offer price and first-day closing price is captured by(More)
This paper examines the impact of client size on the estimation of audit fee premiums attributed to industry specialization in the Australian market for audit services. Previous research suggests that higher audit fees are expected for both larger clients and for industry specialization. The difference however is with respect to whether fee premiums are(More)
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