AND STOCK PRICE CRASH RISK
...Our evidence is consistent with some non-GAAP disclosures exposing investors
to risks of large and sudden price declines.
Managers can use non-GAAP reporting as a substitute
for earnings management to withhold bad news from investors
(the traditional explanation for crashes)
...
Corporate Disclosure
how Constraints on corporate information
production affect disclosure policies. We
find that films in areas with higher flu
activity are less likely to issue short-run
earnings forecasts and more likely to issue
long-run earnings forecasts...Our results
suggest that managers do not simply avoid
issuing forecasts in response to
information production Constraints.
Instead, they shift the forecast horizon
from short-run to long-run, appearing to
balance the costs of issuing low-quality
forecasts with those of not issuing
Corporate Disclosure: Evidence
from Derivative Lawsuits
...Using the staggered adoption of
universal demand (UD) laws in the United
States, we study the effect of shareholder
litigation risk on corporate disclosure. We
find that disclosue significantly increases
after UD laws make it more difficult to file
derivative lawsuits...
CONSISTENCY
...We argue that forecasts that are a
predictable transformation of realized
earnings without random error are more
informative than unbiased forecasts with a
small unpredictable error even if biased
forecasts are less accurate...
has a negative effect on the volume of opportunistic insider selling
and a positive effect on its profitability for each transaction
We further find robust evidence when we extend the analyses
to the Chinese and Hong Kong stock exchanges.
Our findings suggest that short sellers
play a disciplinary role in opportunistic insider selling.
Waipi'o Black Sand Beach, Big Island, Hawaii (2012)
Photo credit: CNG
Managerial attributes, financial reporting and voluntary disclosure, Analyst' forecasts and
recommendations
Published Papers
16.
How Do Institutional Investors Facilitate Reporting Comparability? Evidence from Common Institutional Ownership in the U.S.
Flu Fallout: Information Production Constraints and Corporate Disclosure14. “Strategic Disclosure and Debt Covenant Violation” 13. “Non-GAAP Earnings and Stock Price Crash Risk” 12. “Insider Sales under the Threat of Short Sellers: New Hypothesis and New Tests” 11. “Bundled Earnings Guidance and Analysts’ Forecast Revisions” 10. “Generalist CEOs and Audit Pricing” 9. “Labor Market Mobility and Expectation Management: Evidence from Enforceability of Non-Compete Provisions” 8. “Does Media Exposure Affect Financial Reporting Quality Through Auditors?” 7. “Auditor Choice and Information Asymmetry: Evidence from International Syndicated Loans” 6. “Shareholder Litigation and Corporate Disclosure: Evidence from Derivative Lawsuits” 5. “Does Accounting Conservatism Mitigate the Shortcomings of CEO Overconfidence?” 4. “The Bright Side of Managerial Over-optimism” 3. “Management Forecast Consistency” 2. “The Impact of Internal Control Weakness Reporting on External Financing” 1. “The Spillover Effect of Disclosure Rule and Materiality Thresholds: Evidence from Profit Warnings Issued in Hong Kong Markets”
Selected Working Papers
1.
“Mind the Gap: Employee Disclosures during Contract Renegotiations”
2.
“Messaging without a Message: Executive Value and Social Media Activity”
3.
“Auditor Competencies, Organizational Learning, and Audit Quality: Spillover Effects of Auditing Cross-Listed Clients”
4.
“Attorney Self-Interest, Managerial Discretion over Tax Avoidance, and Firm Value”
More Detail at Google Scholar
This feeling I'm trying to fight
It's dark and I think that I would
Give anything
For you to shine down on me
How far you are I just don't know
The distance I'm willing to go
I pick up a stone that I cast to the sky
Hoping for some kind of sign
Lonestar where are you out tonight?
This feeling I'm trying to fight
Norah Jones - Lonestar
Qilanbulak, Bayingolin Mongol Autonomous Prefecture (2011)
