• Publications
  • Influence
Accrual Reliability, Earnings Persistence and Stock Prices
This paper extends the work of Sloan (1996) by linking accrual reliability to earnings persistence. We construct a model showing that less reliable accruals lead to lower earnings persistence. WeExpand
  • 1,073
  • 101
  • PDF
The Use of DuPont Analysis by Market Participants
DuPont analysis, a common form of financial statement analysis, decomposes return on net operating assets into two multiplicative components: profit margin and asset turnover. These two accountingExpand
  • 255
  • 44
  • PDF
The Predictive Value of Expenses Excluded from 'Pro Forma' Earnings
We investigate the informational properties of pro forma earnings. This increasingly popular measure of earnings excludes certain expenses that the company deems non-recurring, non-cash, or otherwiseExpand
  • 345
  • 42
  • PDF
Do Managers Define Non-GAAP Earnings to Meet or Beat Analyst Forecasts?
We provide evidence consistent with firm managers opportunistically defining non-GAAP earnings in order to meet or beat analyst expectations. This result is robust to controlling for other tools ofExpand
  • 161
  • 34
Differential properties in the ratings of certified versus non-certified bond-rating agencies
We examine whether the properties of bond ratings from certified agencies (designated by the SEC) differ from those of non-certified bond rating agencies. Bond ratings from non-certified agencies areExpand
  • 247
  • 32
  • PDF
Implied Equity Duration: A New Measure of Equity Risk
Duration is an important and well-established risk characteristic for fixed income securities. We use recent developments in financial statement analysis research to construct a measure of durationExpand
  • 190
  • 25
  • PDF
Non-GAAP Earnings and Board Independence
We examine the association between board independence and the characteristics of non-GAAP earnings. Our results suggest that companies with less independent boards are more likely toExpand
  • 106
  • 17
  • PDF
Going, Going, Gone? The Apparent Demise of the Accruals Anomaly
Consistent with public statements made by sophisticated practitioners, we document that the hedge returns to Sloan's anomaly appear to have decayed in U.S. stock markets to the point that they are, on average, no longer reliably positive. Expand
  • 177
  • 16
Using Industry-Adjusted DuPont Analysis to Predict Future Profitability
Industry peer groups serve as both a theoretical and an intuitive benchmark in financial statement analysis. However, the practice of industry-adjusting financial ratios is sparse in existingExpand
  • 76
  • 7
Conservatism, Growth and Return on Investment
Return on Investment (ROI) is widely regarded as a key measure of firm profitability. The accounting literature has long recognized that ROI will generally not reflect economic profitability, asExpand
  • 63
  • 3