Susan G. Watts

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We examine the stock price reaction to earnings announcements in the five years following seasoned equity offerings (SEOs). On average, post-SEO earnings announcements are met with a significantly negative abnormal stock price reaction. Although this negative reaction accounts for a disproportionately large portion of long-run post-SEO abnormal stock(More)
JEL classification: D81 G31 G32 G38 M41 M48 Keywords: Corporate investment Uncertainty Q theory Private companies Corporate disclosure Financial accounting Disclosure regulation a b s t r a c t Public firms provide a large amount of information through their disclosures. In addition, information intermediaries publicly analyze, discuss, and disseminate(More)
We study a firm's decisions to engage in socially responsible activities, voluntarily report on them and purchase external assurance of the report. In our signaling model, neither firm type nor the level of activity is observed. We show that if voluntary assurance is not too expensive, the firm that engages in more socially responsible activities purchases(More)
This paper gives an overview view of an integrated computer-assisted assessment system which is being developed from a proven Optical Mark Reader-based activity. Over 20,000 summative and formative tests are administered per annum at Kingston University using an OMR system. A new web-based system is being piloted alongside the assessment module in the(More)
We study two aspects of voluntary corporate social responsibility (CSR) disclosures: how they are provided on corporate websites (standalone versus web-based) and how their content varies with the decision to purchase external assurance. Larger firms and firms with higher capital expenditures (i.e., those with longer horizons or greater current exposure to(More)
We study the joint delegation of operating and disclosure choices in a multiprincipal agent setting. We find that joint delegation alters both the incentives to deviate from profit– maximizing operating choices and disclosure policy adoption choices. Incentive weights on revenues are greater for the firm with greater ex ante cost uncertainty, greater(More)
We examine returns in a long window surrounding earnings restatements. We find statistically significant positive returns in the six months after negative restatement announcements, especially in the 3-6 month window using several alternate measures. Results suggest these returns are not a result of traditional risk factors or a permanent shift in cost of(More)