Review of Accounting Studies

Accounting regulations require firms to separately disclose the profits and losses from discontinued operations. These discontinued operations are typically excluded from the definition of income used by investors, analysts, and others. Barua …

We propose a simple framework for understanding accounting-based stock return regularities. A firm’s accounting reports provide noisy information about hidden economic states that evolve according to a Markov process. In response to the accounting …

We analyze the value of investor relations (IR) strategies to IPO firms. We find that firms that are less visible and have inexperienced management tend to hire IR consultants prior to the issue date. IR consultants help create positive news …

We investigate the impact of independent valuation specialists on the downward bias of pre-initial public offering employee stock option valuations. Undervalued stock price estimates underlying firms’ option grants produce option valuations that …

This paper studies the effects of disclosing the audit engagement partner’s identity on individual and partnership incentives and overall audit quality. We model a collective decision problem, incorporating individual engagement partners’ …