Prior research demonstrates that investors respond differently to earnings surprises that are part of a string of consecutive earnings increases or surprises than to those that are not. To shed light on who values these patterns, I compare trading responses of small and large traders to earnings surprises that occur during a series of positive or negative surprises. I find that the relative int...

Married men's wage premium is often attributed to within-household specialization: men can devote more effort to wage-earning when their wives assume responsibility for household labor. We provide a comprehensive evaluation of the specialization hypothesis, arguing that, if specialization causes the male marriage premium, married women should experience wage losses. Furthermore, specialization ...

Existing research suggests that market misvaluations affect corporate investment, often leading to suboptimal investment. I examine whether earnings smoothing reduces the impact of market misvaluations on corporate investment and in turn enhances investment efficiency. I find that earnings smoothing has a strong negative effect on the sensitivity of corporate investment to stock prices. Further...

The purpose of this paper is to examine whether female earnings have influenced divorce rates in Australia, using state-level data for the past four decades. Following a recent study by Ressler and Waters (2000), which concludes from comparable US data that female earnings and divorce rates may be jointly endogenous, initial testing is performed to identify whether female earnings can be treate...

This paper examines the effect of introducing insider tratlin~; restrictions on the behaviour of the Amsterdam Stock Exchange. From 198'7 on, insiders are no longer allowed to trade two months before an annual earnings announcement. The results indicate that stocks became less liquid (when liquidity is measured by trading volume) when insiders were not allowed to trade. We also find some eviden...

We investigate whether stock betas vary with the release of firm-specific news. Using daily firm-level betas estimated from intraday prices, we find that betas increase on earnings announcement days and revert to their average levels two to five days later. The increase in betas is greater for earnings announcements that have larger positive or negative surprises, convey more information about ...

This paper investigates the impact of the firm’s accounting information and, especially the role of earnings quality, on its cost of capital and how this influences excess returns. The analysis extends prior works by investigating how components of accounting information and, especially earnings quality, affect stock returns through their effect on the cost of capital. The empirical approach us...

This paper investigates, both theoretically and empirically, how earnings management and ownership retention interact, and how these two jointly affect the equilibrium market valuation of IPO firms in the presence of information asymmetry. Analytically, this paper extends the univariate signaling framework of Leland and Pyle (1977) and derives an efficient signaling equilibrium in which both re...

Do Employees Profit from Profit Sharing? Evidence from Canadian Panel Data Using panel data from a large sample of Canadian establishments, this paper examines whether employee earnings increase, decrease, or do not change in the period subsequent to adoption of profit sharing, relative to establishments that do not adopt profit sharing. Our research contributes to knowledge by utilizing longit...