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Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences
Researchers have used various measures as indications of "earnings quality" including persistence, accruals, smoothness, timeliness, loss avoidance, investor responsiveness, and external indicatorsExpand
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Why Firms Use Currency Derivatives
The authors examine the use of currency derivatives in order to differentiate among existing theories of hedging behavior. Expand
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The Impact of Cash Flow Volatility on Discretionary Investment and the Costs of Debt and Equity Financing
We document that cash flow volatility is associated with lower levels of investment in capital expenditures, R&D, and advertising. Thus, firms do not turn to external capital markets to fully coverExpand
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Executive Overconfidence and the Slippery Slope to Financial Misreporting
A detailed analysis of 49 firms subject to AAERs suggests that approximately one-quarter of the misstatements meet the legal standards of intent. In the remaining three quarters, the initialExpand
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Taking a View: Corporate Speculation, Governance, and Compensation
Using a unique dataset from a well-known survey on derivatives use, this paper examines several questions about the use of derivatives to “take a view” on interest-rate and currency movements. TestsExpand
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Strategic Benchmarks in Earnings Announcements: The Selective Disclosure of Prior‐Period Earnings Components
This paper provides evidence that managers strategically select the prior‐period earnings amount that is used as a benchmark to evaluate current‐period earnings in quarterly earnings announcements.Expand
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Hedging and Coordinated Risk Management: Evidence from Thrift Conversions
We provide an explanation for hedging as a means of allocating rather than reducing risk. We argue that when increases in total risk are costly, firms optimally allocate risk by reducing (increasing)Expand
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The Association Between Stock-Price Interest Rate Sensitivity and Disclosures About Derivative Instruments
Using a sample of publicly traded savings and loan associations, this paper provides evidence that off-balance sheet derivatives activities are positively associated with lower stock-price interestExpand
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Evaluating concepts-based vs. rules-based approaches to standard setting
INTRODUCTION In its new project on Codification and Simplification, the FASB indicates its intent to evaluate the feasibility of issuing concepts-based standards rather than issuing detailed,Expand
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