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Management Association annual meetings and the 1997 Bu!alo Conference on Financial Economics and Accounting for their comments and Commerce Clearing House for allowing us the use of their library. We are particularly grateful to an anonymous referee whose suggestions have greatly improved this paper. Abstract We examine whether an increase in focus is an(More)
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participants at the workshops at Tulane University and the annual Financial Management Association meetings, two anonymous referees and many of our colleagues for helpful comments at various stages of this research. We also thank Lipper Analytical Services, Inc. for providing data on monthly total net assets and returns, and thank Mark Carhart for data on(More)
Exchange Commission for helpful comments. Jaclyn Whitehorn provided research assistance. We are grateful to Thomson Financial for providing earnings per share forecast data, available through the Institutional Brokers Estimate System. These data have been provided as part of a broad academic program to encourage earnings expectations research. Abstract(More)
Miller (1977) hypothesizes that differences of opinion among investors about stock value result in overvaluation so long as some investors are short-sales constrained. Prior evidence on the role of differences of opinion for stock prices has not yielded convincing evidence. We test the Miller hypothesis by focusing on earnings announcements because such(More)
We use the context of a company's IPO of equity securities as a capital-markets setting to empirically study the economic consequences of endogenous disclosure. Specifically, we examine the relation between the extent of dollar detail that an IPO issuer provides regarding their intended use of proceeds and first-day underpricing. We report rather strong(More)
Economic performance (economic profits, economic income, or underlying operating performance) of a firm is not observable. Market participants use accounting earnings and other proxies to measure the otherwise unobservable economic performance. Ball and Brown (1968) show that accounting earnings capture the economic performance to some extent. In(More)