Author Contact: David E. Giles, Dept. of Economics, University of Victoria, P.O. Box 1700, STN CSC, Victoria, B.C., Canada V8W 2Y2; e-mail: [email protected]; Phone: (250) 721-8540; FAX: (250) 721-6214 Abstract We model the durations between firms’ “Initial Public Offerings” (IPOs) and their subsequent “Seasoned Equity Offerings” (SEOs) in China during the period from 1 January 2001 to 1 July 2006...

The 1990-1991 recession has intensified concerns about the consequences of workers’ job losses. To estimate the magnitude and temporal pattern of displaced workers’ earnings losses, we exploit an unusual administrative data set that includes both employees’ quarterly earnings histories and information about their firms. We find that when high-tenure workers separate from distressed firms their ...

This study uses a random effect panel model to examine the impact of CEO traits and compensation on earnings performance and financial leverage for the 729 listed US companies in ExecuComp over the period of 2001– 2010. The results indicate that CEO cash compensation has a negative relationship with earnings performance, but that it has a positive impact on financial leverage. Moreover, for CEO...

This paper investigates the determinants of capital structure of financial service firms in China. Using a relative regression of accounting data for 36 A-share financial listed companies over the years 2005-2009, an empirical study on determinants of capital structure in financial industry is conducted. The results show that profitability, firm size, non-debt tax shields, earnings volatility a...

A number of different models have been suggested for detecting earnings management but the linear regression-based model presented by Jones (1991) is the most frequently used. The underlying assumption with the Jones model is that earnings are managed through accounting accruals. Typically, the companies for which earnings management is studied are grouped based on their industries. It is thus ...

For private equity (PE) firms, follow-on funds provide additional streams of management fees for a considerable time. When prospective investors evaluate the performance PE firms' latest funds, they have to rely on valuations reported by firms. The link between fundraising and evaluation is thus an area susceptible manipulation resulting in potentially high stakes. We examine relationship press...

a r t i c l e i n f o I propose a new multi-factor asset pricing model with new-Keynesian factors to explain stock return anomalies from 1972Q1 to 2009Q2. This new model explains the average returns across testing portfolios formed on financial distress, momentum, and standardized unexpected earnings with misspecification-robust statistics. Test portfolios formed on net stock issues and total a...

We examine the stock price reaction to announcements that firms are alleged to be doing fraudulent financial reporting or manipulating earnings, using a sample of firms cited by the Securities Exchange Commission (SEC) in its Accounting and Auditing Enforcement Releases (AAERs) during the time period 1985-2005. We find a total 14% drop in stock price over a three day window surrounding the anno...

Based on valuation model of residual earnings, we cannot use earnings and losses of balance sheet items recorded in fair value for valuation purposes, for the balance sheet provides a perfect estimate of such items’ value. The purpose of this study is to examine whether net financial expenses are related to the market price of stocks in Iran, because after initial recording of financial debts, ...