This dissertation consists of two essays. The first essay provides a rational explanation of the mysterious earnings discontinuity phenomenon. It also develops two new empirical predictions which are supported by the empirical tests. The second essay identifies conditions under which leading indicator variables discourage long-term investment. Essay 1: Discontinuity in Earnings Distribution: A ...

this study presents empirical evidence concerning the effect of different accounting standard on earnings management. prior studies have shown that accounting standards influence earnings management. tighter accounting standards regime restricts management’s descretion to manipulate accruals, and at the same time, induce more costly real earnings management activities. to investigate this iss...

Information asymmetry in stock market can increase the risk of investment which in turn increases the capital cost of firms. Bhattacharya (1979) proposed a hypothesis that states dividend can act as a powerful signal in order to solve information asymmetry problem. We measured information asymmetry by lack of earnings transparency. Therefore we examine the effect of earnings transparency on cap...

We analyze the ability of earnings and non-earnings performance metrics to explain stock returns for industries where we identify, ex ante, an allegedly preferred (for valuation purposes) performance metric. We identify three industries each where earnings before interest, taxes, depreciation and amortization (EBITDA) and cash from operations are preferred, and three industries where specific n...

investment institutions with substantial shareholdings in a firm have the resources and incentives to monitor and influence management decisions. whether the institutions actually monitor and exert pressure on managers is an empirical question.this study is designed to provide insights into the monitoring role of institutional investors by examining whether institutional ownership affects the i...

full, on-time, and with quality disclosure of financial information can lead to the transparency of such information and decreases information asymmetry. among the published information of firms, earnings are of priority importance attended by many users; therefore, the issue of the transparency of accounting earnings is of high importance. the aim of this study is investigating the accounting ...

Abstract This paper aims to investigate the impact of deferred tax, as a technique adopted support economic orientation financial statements over their legal form, on earnings quality required attribute achieve objective reporting. The study used model Sloan (1996) through 280 firm-year observations that concern 40 Algerian companies from 2013 2019. Employing persistence and predictive ability ...

introduction: the purpose of this study was to investigate the role of patience and its components (transcendence, tolerance, contentment, persistence, and hesitation) in predicting bullying among primary school children in shiraz, iran. another purpose was to compare patience and bullying between male and female students. method: the participants were 317 elementary school students (169 female...

This paper examines whether investor learning about profitability (i.e., the mean of earnings distribution) leads to persistence in disclosure decisions. A repeated single-period model shows that persistent beliefs lead Using forecast data, I structurally estimate and perform several counterfactual analyses. find that, when investors are assumed know profitability, management decisions signific...