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The market pricing of accruals quality
We investigate whether investors price accruals quality, our proxy for the information risk associated with earnings. Measuring accruals quality (AQ) as the standard deviation of residuals fromExpand
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Costs of Equity and Earnings Attributes
We examine the relation between the cost of equity capital and seven attributes of earnings: accrual quality, persistence, predictability, smoothness, value relevance, timeliness, and conservatism.Expand
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Do Nonaudit Services Compromise Auditor Independence? Further Evidence
This paper challenges the findings of Frankel et al. (2002) (FJN). The results of our discretionary accruals tests differ from FJN's when we adjust discretionary current accruals for firm performan...
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The Effects of Corporate Governance on Firms' Credit Ratings
TLDR
We investigate whether firms with strong corporate governance benefit from higher credit ratings relative to firms with weaker governance. Expand
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The Information Role of Conservatism
In this paper we argue that information asymmetry between firm insiders and outside equity investors generates conservatism in financial statements. Conservatism reduces the manager’s incentives andExpand
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Managerial Ownership and Accounting Conservatism
In this paper we examine the effect of managerial ownership on financial reporting conservatism. Separation of ownership and control gives rise to agency problems between managers and shareholders.Expand
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The Effect of SOX Internal Control Deficiencies and Their Remediation on Accrual Quality
This paper investigates the effect of internal control deficiencies and their remediation on accrual quality. We first document that firms reporting internal control deficiencies have lower qualityExpand
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The Effect of SOX Internal Control Deficiencies on Firm Risk and Cost of Equity
ABSTRACT The Sarbanes-Oxley Act (SOX) mandates management evaluation and independent audits of internal control effectiveness. The mandate is costly to firms but may yield benefits through lowerExpand
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Information Uncertainty and Post-Earnings-Announcement-Drift
We examine whether rational investor responses to information uncertainty (IU) explain properties of and returns to the post-earnings-announcement-drift (PEAD) trading anomaly. Consistent with aExpand
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Do Non-Audit Services Compromise Auditor Independence? Further Evidence
This paper challenges the findings of Frankel et al. (2002) (FJN). The results of our discretionary accruals tests differ from FJN's when we adjust discretionary current accruals for firmExpand
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