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Review of Quantitative Finance and Accounting OnlineFirst articles

Open Access 03-12-2023 | Original Research

Earnings quality and board meeting frequency

We propose that corporate directors are in greater need of soft information about the firm when the quality of hard accounting information is low. We further propose that board meetings constitute a key opportunity for corporate directors to …

Nikos Vafeas, Adamos Vlittis

Open Access 01-12-2023 | Original Research

The impact of the Paycheck Protection Program on the risk-taking behaviour of US banks

The economic impact of the COVID-19 pandemic placed many small businesses across the US in financial distress. In response to this, in March 2020 the US government introduced, as part of the CARES Act, the Paycheck Protection Program (PPP) …

Stefano Filomeni

30-11-2023 | Original Research

Chalk it up to experience: CEO general ability and earnings management

We provide evidence that firms managed by CEOs with high general ability, or broad experience in their background, are more likely to utilize discretionary accruals to manage earnings than CEOs with focused experience. Cross-sectional variation …

Leila Zbib, Kourosh Amirkhani, Douglas Fairhurst

25-11-2023 | Original Research

Effect of FinCredit on income inequality: the moderating role of financial inclusion

This paper examines the direct effect of FinCredit on income inequality and the moderating effect of Financial Inclusion. Using a dual-process variable selection approach, we develop an optimal model to test two hypotheses and explore how …

Xuan T. T. Pham, Thu B. Luu

24-11-2023 | Original Research

Consistent valuation: extensions from bankruptcy costs and tax integration with time-varying debt

This study introduces a new version of the adjusted present value (APV) method and ensures its consistent valuation with the cost of capital (CoC) method at the highest level of generalization. The newly developed APV version and equivalent …

Nguyen Kim-Duc, Pham Khanh Nam


Are directors with foreign experience better monitors? Evidence from investment efficiency

Using Chinese listed firms from 2008 to 2018, we find that directors with foreign experience alleviate both overinvestment and underinvestment, hence improve firms’ investment efficiency. The source of efficiency lies in better governance, which …

Xueman Xiang, Carl R. Chen, Yue Liu, Azhar Mughal, Qizhi Tao

14-11-2023 | Original Research

Liquidity difference between non-U.S. and U.S. IPOs on the NYSE listings

We investigate liquidity and information asymmetry for a sample of non-U.S. stock listings and U.S. IPO listings on the NYSE. We find that non-U.S. stock listings tend to have wider spreads, larger price impact of trades, and higher probability of …

Jang-Chul Kim, Kaun Y. Lee, Ha-Chin Yi

13-11-2023 | Original Research

Cash flow sensitivity of cash: when should we use it to measure financial constraints?

Since Almeida et al. (J Financ 59:1777–1804, 2004), there has been a long debate on whether the cash flow sensitivity of cash (CFSC) measures financial constraints. Like all measures of financial constraints, CFSC is not a perfect one. Thus, how …

Weiping Hu, Xiao Zhang, Ye He

10-11-2023 | Original Research

A reduced-form model for lease contract valuation with embedded options

This paper provides an analytical formula for valuing lease contracts in the most general case, including adjustable leases, with cancellation, purchase, and default options. We then illustrate the numerical implementation of our model. Numerical …

Chuang-Chang Chang, Hsiao-Wei Ho, Henry Hongren Huang, Yildiray Yildirim

07-11-2023 | Original Research

CEO confidence matters: the real effects of short sale constraints revisited

This paper investigates the role of managerial biases in the real effects of limits to arbitrage. In a natural experiment setting with Regulation SHO, we find that the lifting of short sale constraints leads to a significant decrease in CEO …

Juwon Jang, Eunju Lee

Open Access 07-11-2023 | Original Research

The impact of economic policy uncertainty and inflation risk on corporate cash holdings

This paper analyses the joint effects of Economic Policy Uncertainty (EPU) and inflation risk on the Corporate Cash Holdings (CCH) of US firms from 2011 to 2021. The baseline results suggest that EPU and inflation risk positively impact CCH.

Bijoy Chandra Das, Fakhrul Hasan, Soma Rani Sutradhar

Open Access 06-11-2023 | Original Research

CFO overconfidence and conditional accounting conservatism

This study investigates the association between Chief Financial Officers (CFOs) overconfidence and conditional accounting conservatism. Relying on upper echelons and overconfidence theories and based on a large sample of US-listed firms’ data from …

Lu Qiao, Emmanuel Adegbite, Tam Huy Nguyen

Open Access 04-11-2023 | Original Research

What do dividend changes reveal? Theory and evidence from a unique environment

We explore the reasons behind corporate dividend changes and factors driving those changes during 2001–2021 in Oman, as a unique environment. The implications of our paper contrast with the relevant existing literature which demonstrates a …

Abdullah AlGhazali, Khamis Hamed Al-Yahyaee, Richard Fairchild, Yilmaz Guney

29-10-2023 | Original Research

Corporate social responsibility and myopic management practice: Is there a link?

A Corporate Social Responsibility (CSR)-myopic firm is one that experiences greater-than-normal operating profits but scores worse in its CSR ‘strength’ or ‘concern’ rankings than is normally expected during the same year. We show that myopic …

David K. Ding, Christo Ferreira, Vu Minh Ngo, Phuc V. Nguyen, Udomsak Wongchoti


The risk of SIN or socially irresponsible stocks

We demonstrate that the current practice of assuming SIN stocks are riskier than non-SIN stocks is misleading for SIN, or socially irresponsible, investments in alcohol, tobacco and gambling securities. Using annual North American data from 1980 …

Alireza Rezaeian, Marie Racine

19-10-2023 | Original Research

Forced consolidation

The European Union is moving closer to consolidating their equity markets as the United States did in the 1970s. In February 2023 fourteen European exchanges collaborated on a proposal to create a consolidated tape. This paper provides an …

Anna Pomeranets, Daniel G. Weaver

19-10-2023 | Original Research

Do environmental and social practices matter for the financial resilience of companies? Evidence from US firms during the COVID-19 pandemic

This paper contributes to the understanding of the relation between the environmental and social positioning of companies and the financial resilience in the specific context of the COVID-19 crisis. Resilience is measured through two dimensions …

Hachmi Ben Ameur, Selma Boussetta

Open Access 17-10-2023 | Original Research

CEO power, corporate risk management, and dividends: disentangling CEO managerial ability from entrenchment

We contribute to the literature on dividend policy by considering two largely ignored, yet important factors, namely CEO power and corporate risk management. We first disentangle CEO managerial ability from entrenchment - the two sources of …

Mike Adams, Wei Jiang, Tianshu Ma

13-10-2023 | Original Research

Robust lessons learned from bank failures during the Great Financial Crisis

Several empirical studies have identified unique characteristics of banks that subsequently failed during the Great Financial Crisis. The notion is that by identifying these risk characteristics we are better able to monitor and regulate the risks …

Cullen F. Goenner

12-10-2023 | Original Research

Corporate social responsibility, earnings management and firm performance: evidence from panel VAR estimation

Research that relates corporate social responsibility (CSR) to earnings management (EM) interprets directional relations between CSR and EM as indicators of opportunistic or ethical behavior by managers. On the one hand, EM leads to higher levels …

Mark Anderson, Soonchul Hyun, Hussein Warsame