Yaniv Konchitchki

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We show that the asymmetric effects of income taxes and special items for profit and loss firms contribute substantially to a discontinuity at zero in the distribution of earnings. Income taxes draw profits towards zero while special items pull loss observations away from zero. These earnings components are thus expected to contribute to a discontinuity(More)
This study explores decisions related to formal empirical tests of business models and interpretations and uses of those tests. Business models describe managers' rationales as to how their organizations will achieve success. This study documents a test of one company's business model under seemingly favorable conditions for such a test – a successful(More)
We provide evidence that firms with more transparent earnings enjoy a lower cost of capital. We base our earnings transparency measure on the extent to which earnings and change in earnings covary contemporaneously with returns. We find a significant negative relation between our transparency measure and subsequent excess and portfolio mean returns, and(More)
The monetary unit assumption of financial accounting assumes a stable currency ͑i.e., constant purchasing power over time͒. Yet, even during periods of low inflation or deflation, nominal financial statements violate this assumption. I posit that, while the effects of inflation are not recognized in nominal statements, such effects may have economic(More)
In this paper I show that, with sufficient flexibility in the covariance structure of the risk factors and the market prices of these risks, a low-dimensional term structure model can simultaneously price bonds and related options. I find that a component of volatility risk largely unrelated to the shape of the yield curve is a determinant of expected(More)
There is strong empirical evidence that long-term interest rates contain a time-varying risk premium. Interest rate options may contain information about this risk premium because their prices are sensitive to the volatility and market prices of the risk factors that drive interest rates. We use the joint time series of swap rates and interest rate cap(More)
In this study, we hypothesize and find that financial statement analysis of firm profitability drivers applied at the aggregate level yields timely insights that are relevant for forecasting real economic activity. We first show that focusing on the 100 largest firms offers a cost-effective way to extract information embedded in accounting profitability(More)
for helpful comments and discussions. I am also thankful to a managing director at Morgan Stanley who shared with me some of his knowledge on debt markets and distressed debt investing. I appreciate comments and suggestions from workshop participants at the Virginia. I thank Michael Roberts for providing the link table between the COMPUSTAT and Dealscan(More)
Accounting systems researchers have long had an interest in " knowledge management " (KM), where KM can be referred to as the processes managers use to create and leverage knowledge within the firm. In addition, the Big 4 are large providers of KM services and managers currently invest tens of billions of dollars annually in KM. However, despite case study(More)