Skip to main content

Review of Accounting Studies OnlineFirst articles

Open Access 15.02.2024

New product announcements, innovation disclosure, and future firm performance

This study examines the properties of innovation disclosures contained in new product announcements, a form of voluntary, nonfinancial disclosure. We analyze these properties using a novel, text-based measure of the extent of product innovation …

verfasst von:
Jenny Chu, Yuan He, Kai Wai Hui, Reuven Lehavy


The spillover effect of SEC comment letters through audit firms

This study examines whether auditors serve as a conduit for disseminating Securities and Exchange Commission (SEC) views on reporting and disclosure matters as the result of being privy to clients’ SEC comment letters. This examination is …

verfasst von:
Kenneth L. Bills, Ryan Cating, Chenxi Lin, Timothy A. Seidel


Inventory planning and tax incentives for charitable giving

Many of America’s top corporate donors share a common feature: the bulk of their giving is in the form of in-kind products, not cash. This phenomenon is not a coincidence but rather closely tied to the tax code creating such a preference due to an …

verfasst von:
Anil Arya, Tyler Atanasov, Brian Mittendorf, Dae-Hee Yoon


The role of equity underwriters in shaping corporate disclosure

We find that the exogenous shock of the collapse of Lehman Brothers leads to significant increases in the disclosure of management earnings forecasts and voluntary 8-K items by equity underwriting clients of Lehman relative to clients of other …

verfasst von:
Mei Cheng, Yuan Zhang, Meiling Zhao


Customers’ response to firms’ disclosure of social stances: evidence from voting reform laws

We examine customer responses to publicly traded firms speaking out in response to the state of Georgia’s voting reform laws. For firms that speak out, we find that customer visits and visitors at their stores decrease relative to the stores of …

verfasst von:
Hengda Jin, Kenneth Merkley, Anish Sharma, Karen Ton

Open Access 23.01.2024

Identical ratios: a red flag of ratio management

This paper identifies a helpful red flag stakeholders can use to detect whether a nonprofit has managed its financial information. This red flag is reporting an identical program ratio—that is, the nonprofit organization reports the exact same …

verfasst von:
Qianhua Ling, Andrea Alston Roberts


Earnings per share targets and CEO incentives

We examine differences in CEOs’ achievement of earnings per share (EPS) targets related to (1) analysts’ forecasts and (2) internal cash bonus payouts. Our focus on firms with different benchmarks for the same performance metric enables us to …

verfasst von:
Christopher Armstrong, Jacky Chau, Christopher D. Ittner, Jason J. Xiao


Foreign media slant, foreign investors, and informativeness of earnings

Although foreign media outlets comprise a substantial proportion of the media covering U.S. financial markets, their characteristics and role in these financial markets have not been explored. Using a novel, manually collected dataset covering …

verfasst von:
Albert Tsang, Kun Tracy Wang, Nathan Zhenghang Zhu


Differences in the value relevance of identifiable intangible assets

Motivated by investor criticisms of current accounting standards, this study investigates whether differences exist in how acquired identifiable intangible assets relate to investors’ expectations about the entity’s cash flow prospects. Some …

verfasst von:
Zachary King, Thomas J. Linsmeier, Daniel D. Wangerin


The media response to a loss of analyst coverage

This paper examines how the media responds to the loss of analyst coverage resulting from brokerage mergers and closures. We find some evidence of an overall decrease in media coverage of affected firms, consistent with analysts serving as a …

verfasst von:
Nicholas Guest, Jaewoo Kim

Open Access 09.11.2023

Predictable EPS growth and the performance of value investing

Previous research finds that EPS growth rates are difficult to predict and reasons that much of the observed cross-sectional variation in valuation ratios is due to variation in implied future stock returns. Yet the observed cross-sectional …

verfasst von:
Richard G. Sloan, Annika Yu Wang


IPO price formation and analyst coverage

Given important market and regulatory changes over the past two decades, we re-examine the relation between IPO pricing and coverage by sell-side stock analysts. Our design builds on the well-documented finding of the partial adjustment …

verfasst von:
Joseph Weber, Michael Willenborg, Biyu Wu, Yanhua Sunny Yang


Human bias in the oversight of firms: evidence from workplace safety violations

We study the effects of mood as a source of human bias on regulators’ oversight and enforcement decisions. We use weather at facilities at the time of an OSHA inspection to proxy for the OSHA compliance officers’ mood. We find that, during periods …

verfasst von:
Jonas Heese, Gerardo Pérez-Cavazos, Andreya Pérez-Silva

Open Access 16.10.2023

No news is bad news: local news intensity and firms’ information environments

We examine the effects of local newspapers on firms’ information environments. With newspaper employment dropping precipitously in the last few decades, we posit that these changes will harm local firms’ information environments. Consistent with …

verfasst von:
Kristian D. Allee, Ryan Cating, Caleb Rawson


Are earnings better than cash flows at predicting future cash flows? Evidence from apples-to-apples comparisons

We compare the abilities of earnings and cash flows to predict future cash flows. We take a novel approach in that we perform apples-to-apples comparisons of five earnings components measured on an accrual basis with their equivalents measured on …

verfasst von:
Ryan J. Casey, George W. Ruch


Properties of accounting performance measures used in compensation contracts

This paper examines the properties of accounting numbers used in compensation contracts for S&P 500 firms from 2006 to 2017. Our data reveal wide variation in the accounting performance metrics used in compensation contracts, with some recent …

verfasst von:
Oktay Urcan, Hayoung Yoon

Open Access 03.10.2023

When do firms deliver on the jobs they promise in return for state aid?

US state governments frequently provide firms with targeted subsidies. In exchange, recipients promise to create or retain a certain number of jobs in the subsidizing state. Using novel hand-collected data, we address three questions: (i) the …

verfasst von:
Qingkai Dong, Aneesh Raghunandan, Shivaram Rajgopal


Does audit firm hiring of former PCAOB personnel improve audit quality?

We examine whether employees of the Public Company Accounting Oversight Board (PCAOB) that are hired by large audit firms are associated with subsequent higher audit quality at these firms. Employees at the PCAOB acquire expertise related to the …

verfasst von:
Jagan Krishnan, Jayanthi Krishnan, Steven A. Maex


Regulatory spillover effects in OTC markets

We assess a recent SEC initiative that suspends inactive shell companies from trading in over-the-counter (OTC) stock markets. Critics argue these suspensions do little to reduce fraud in OTC markets because they simply redirect fraudsters’ …

verfasst von:
Richard A. Cazier, Jianning Huang, Fuzhao Zhou


Debiasing earnings persistence estimates

This study provides a theoretical framework to help isolate persistence estimates of earnings innovations from the effects of accounting measurements. We show that estimates of persistence are biased downward when using reported earnings because …

verfasst von:
Brian Rountree, Konduru Sivaramakrishnan, Yanyan Wang, Lisheng Yu