Akihiro Kushima,1 Sidney Yip,1,2 and Bilge Yildiz1,* 1Department of Nuclear Science and Engineering, Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge, Massachusetts 02139, USA 2Department of Materials Science and Engineering, Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge, Massachusetts 02139, USA Received 16 April 2010; revised manuscript rec...

Vittorio Giovannetti,* Saikat Guha, Seth Lloyd, Lorenzo Maccone, and Jeffrey H. Shapiro Massachusetts Institute of Technology, Research Laboratory of Electronics, 77 Massachusetts Avenue, Cambridge, Massachusetts 02139, USA Massachusetts Institute of Technology, Department of Mechanical Engineering 77 Massachusetts Avenue, Cambridge, Massachusetts 02139, USA (Received 1 April 2004; published 21...

Reto B. Schoch* Microsystems Laboratory, STI-LMIS, École Polytechnique Fédérale de Lausanne (EPFL), CH-1015 Lausanne, Switzerland; Department of Electrical Engineering and Computer Science, Massachusetts Institute of Technology, 77 Massachusetts Avenue, Cambridge, Massachusetts 02139, USA; and Department of Biological Engineering, Massachusetts Institute of Technology, 77 Massachusetts Avenue, ...

Andrew S. Fletcher,* Peter W. Shor, and Moe Z. Win Laboratory for Information and Decision Systems, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139, USA Lincoln Laboratory, Massachusetts Institute of Technology, Lexington, Massachusetts 02420 Department of Mathematics, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139, USA Received 7 June 2006; publishe...

From the "Department of Nutrition and Food Science, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139, the 'College of Pharmacy, University of Iowa, Division of Medicinal Chemistry, Iowa City, Iowa 52242, the 'Department of Chemical Engineering, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139, the dWhitaker College of Health Sciences, Management and Tec...

We study firms’investment in internal control to reduce accounting manipulation. We first show the peer pressure for manipulation: one manager manipulates more if he suspects that reports of peer firms are more likely to be manipulated. As a result, one firm’s investment in internal control has a positive externality on peer firms. It reduces its own manager’s manipulation, which, in turn, miti...

This study tests assertions that Economic Value Added (EVAt) is more highly associated with stock returns and firm values than accrual earnings, and evaluates which components of EVA, if any, contribute to these associations. Relative information content tests reveal earnings to be more highly associated with returns and firm values than EVA, residual income, or cash flow from operations. Incre...

Previous studies have examined the manipulation of executive stock option awards and exercises, focusing on information timing by managers. In this paper, we investigate potential managerial manipulation of stock-price performance motivated by executive stock options. To distinguish performance manipulation from information timing, we examine stock-price performance surrounding the departure of...

I review empirical research on the relation between capital markets and financial statements. The principal sources of demand for capital markets research in accounting are fundamental analysis and valuation, tests of market efficiency, and the role of accounting numbers in contracts and the political process. The capital markets research topics of current interest to researchers include tests ...

This paper tests whether traders react more strongly as a series of similar earnings surprises continues, as predicted by several important behavioral finance models. We compile measures of buying and selling from NYSE TAQ data for a large ten-year sample. Results show strong, consistent, evidence that small traders exhibit an increasing reaction – with significant increases in reaction strengt...