1,124 research outputs found
Financial Analysts’ Earnings Forecast Dispersion and Intraday Stock Price Variability Around Quarterly Earnings Announcements
No full textAnalyst Characteristics, Timing of Forecast Revisions, and Analyst Forecasting Ability
Get PDFWe first examine whether analysts with certain characteristics that prior research has identified are related to superior forecasting ability systematically time their forecast revisions later in the fiscal quarter. We then examine whether this superior ability persists after controlling for this timing advantage by using relative forecast error, a measure that largely eliminates the timing advantage of recent forecasts. Using a sample of quarterly earnings forecast revisions over the 20-year period from 1990 to 2009, we find that analysts with more firm-specific and general experience and more accurate prior-period forecasts, analysts employed by larger brokerage firms, and analysts who follow fewer industries and companies tend to revise forecasts later in the quarter. We also find that analyst characteristics that are positively correlated with revision timing are negatively related to relative forecast errors. These results are consistent with analyst characteristics being useful proxies for analyst forecasting ability and analysts with greater ability revising forecasts later in the quarter
Does Disaster Risk Relate to Banks’ Loan Loss Provisions?
Get PDFWe examine the relation between disaster risk and banks’ loan loss provisions (LLP). We propose a disaster risk measure based on the natural disasters declared as major disasters by the Federal Emergency Management Agency over a 15-year span. We theoretically support and empirically validate our measure using three different approaches, including the UN Sendai Framework for disaster risk reduction, which relates disaster risk to natural hazard exposure, vulnerability and capacity, and hazard characteristics. Using more than 445,000 bank-quarter observations, we document that banks located in U.S. counties with higher disaster risk recognize larger LLP after controlling for other bank-level factors related to LLP. We employ several techniques to ensure the robustness of our findings, including difference-in-differences estimation and matched samples. In additional analysis, we explore the characteristics that better enable banks to recognize disaster risk in their LLP, and investigate the consequences of managing disaster risk through LLP. Our results are important, especially because of the increasing concern about disaster risk and because they inform the growing debate on the economic consequences of disaster risk and the ability of the banking system to proactively manage the resulting credit risk through LLP
Auditing related party transactions: evidence from audit opinions and restatements
No full textPublished as:
Fang, J., Lobo, G., Zhang, Y., & Zhao, Y. (2018). Auditing Related Party Transactions: Evidence from Audit Opinions and Restatements. Auditing-A Journal Of Practice & Theory, 37(2), 73–106. doi:10.2308/ajpt-51768Using data from the Chinese market where related party transactions (RPTs) are particularly prevalent, we examine how the independent auditor responds to the potentially heightened risk of RPTs and the efficacy of the auditor’s response. First, we find that the auditor is more likely to issue a modified audit opinion that specifically discusses RPTs (RPTMAO) to firms reporting higher related sales or related lending, but not to firms reporting higher RPTs of other categories (i.e., related purchases, related borrowing, and related assets/equity transactions). These findings suggest that the auditor alerts investors to the possibility of earnings management and/or expropriation risk from related sales or related lending through audit opinions. The positive relation between related sales and RPTMAO is driven by related sales with non-market-based or undisclosed pricing policy and related sales above the industry average. Second, RPTMAO has robust predictive power for future RPT-related restatements, and the predictive power is greater than that of modified opinions that do not specifically discuss RPTs, suggesting that the auditor is effective at communicating the risk associated with RPTs through opinion modifications, especially RPTMAOs
Signaling under threats: evidence of voluntary disclosure in corporate control contests
No full textWe investigate voluntary disclosure strategies in contested takeovers and the associated economic consequences. Using a difference-in-differences research design and propensity score matching, we find that relative to friendly takeovers, target management in contested takeovers provides more earnings guidance and conveys more good news during the takeover. Moreover, voluntary disclosure helps contested targets negotiate a better offer and the results are stronger for targets with more information asymmetry. Collectively, targets adopt voluntary disclosure and alter their strategies under the threat of contested takeover to enhance their bargaining power. Voluntary disclosure by contested targets serves as a negotiation tactic that potentially benefits target shareholders.Peer reviewe
Methods and results for estimating 1930-2018 well pumpage in the Harney Basin, Oregon
No full textReport -- Appendices A-H -- Appendices I-J.Halley J. Schibel and Gerald H. Grondin.This archived document is maintained by the State Library of Oregon as part of the Oregon Documents Depository Program. It is for informational purposes and may not be suitable for legal purposes.Includes bibliographical references (pages 70-72).Mode of access: Internet from the Oregon Government Publications Collection.Text in English
Discussions on Asymmetric Cost Behavior
No full textMy dissertation includes two papers on Asymmetric Cost Behavior. In the first paper, "Change in a Firm’s Access to Cash and Asymmetric Cost Behavior", I examine the effect of an increase in cash on managers’ resource adjustment decisions, as reflected in the asymmetric behavior of SG&A costs. I use the recent tax law change that resulted in tax savings for most firms as my setting. Using a sample of 10,970 firm years, I find that increased cash from reduced taxes is associated with decreased asymmetric cost behavior. Furthermore, the association is stronger when the cash increase is from a one-time tax saving. My results vary with the firm characteristics related to cash, such as cash holdings, financial constraints, and the future value-creating nature of SG&A costs, indicating that an increase in cash affects the firms’ operating decisions. Overall, my results show that the increased cash decreases managers’ cost constraints and plays a key role in the asymmetric cost behavior of firms. My study adds to the literature on asymmetric cost behavior. The second paper, "Reputation Risk and Firm Asymmetric Cost Behavior" is a joint work with Dr. Gerald J. Lobo and Dr. Devendra Kale. ESG is an area of growing economic importance. More and more investors are incorporating ESG into their investment decisions, making ESG crucial for firm value. However, maintaining ESG focus can also require significant investment in resources, which may not have immediate short-term benefits in terms of profitability. Exploiting this tension, we investigate how firms’ ESG risks influence their cost behavior (cost asymmetry). We find that as firms’ ESG risks increase, their cost asymmetry reduces. Further, we find that this relation significantly weakened after the onset of the COVID pandemic, when ESG initiatives received increased focus. We further show that our results are moderated by analyst following and institutional shareholding. This result also shows that managerial opportunism is a potential driver of our results. Our results are important for regulators as well as investors and hedge fund managers.Accountancy and Taxation, Department o
Methods and results for estimating the hydraulic characteristics of the subsurface materials in the Harney Basin, Oregon
No full textGerald H. Grondin, Darrick E. Boschmann, Halley J. Schibel, Benjamin P. Scandella.Title from PDF cover (viewed on December 20, 2021).This archived document is maintained by the State Library of Oregon as part of the Oregon Documents Depository Program. It is for informational purposes and may not be suitable for legal purposes.Includes bibliographical references (pages 56-63).Mode of access: Internet from the Oregon Government Publications Collection.Text in English
The Partisan Republic: Democracy. Exclusion, the the Fall of the Founders\u27 Constitution, 1780s-1830s
Get PDFThis article is a forum on Gerald Leonard and Saul Cornell\u27s The Partisan Republic: Democracy. Exclusion, and the Fall of the Founders\u27 Constitution, 1780s-1830s (Cambridge University Press, 2019). ISBN 978-1-107-02416-8
Roundtable Contents: Introduction by Matthew Crow, Hobart and William Smith Colleges Review by Katlyn Marie Carter, University of Notre Dame Review by Graham G. Dodds, Concordia University, Montreal, Canada Review by Jessica K. Lowe, University of Virginia School of Law Review by Stephen J. Rockwell, St. Joseph\u27s University Author\u27s Response by Saul Cornell, Fordham University Author\u27s Response by Gerald Leonard, Boston Universit
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