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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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The Benefits of Financial Statement Comparability
Investors, regulators, academics, and researchers all emphasize the importance of financial statement comparability. However, an empirical construct of comparability is typically not specified. InExpand
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Implications for GAAP from an Analysis of Positive Research in Accounting
Based on extant literature, we review the positive theory of GAAP. The theory predicts that GAAP’s principal focus is on control (performance measurement and stewardship) and that verifiability andExpand
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Determinants of the Informativeness of Analyst Research
Analyst research helps prices reflect information about a security's fundamentals. However, analysts' private incentives potentially contribute to misleading research and it is possible that theExpand
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On Estimating Conditional Conservatism
The concept of conditional conservatism has provided new insight into financial reporting and has stimulated considerable research since Basu (1997) developed it. While the concept encapsulated inExpand
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Capital Markets Research in Accounting
I review empirical research on the relation between capital markets and financial statements. The principal sources of demand for capital markets research in accounting are fundamental analysis andExpand
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We study the stock market reaction to aggregate earnings news. Previous research shows that, for individual firms, stock prices react positively to earnings news but require several quarters to fullyExpand
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Managing for the Moment: The Role of Earnings Management via Real Activities versus Accruals in SEO Valuation
ABSTRACT We assess the role of both accruals manipulation (AM) and real activities manipulation (RAM) in inducing overvaluation at the time of a seasoned equity offering (SEO). Our results reveal t...
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Security Returns Around Earnings Announcements
SYNOPSIS AND INTRODUCTION: We examine risk, return, and abnormal return behavior in the days around quarterly earnings announcements, using a research design that allows risk to vary daily in eventExpand
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