Using an earnings management model in which managers can manipulate the earnings announcement when the firm’s internal control system fails, this paper proposes a measure of earnings quality, based on Ganuza and Penalva’s (2010) notion of integral precision that can be estimated using either the time series of earnings or the relation between earnings and prices. I show that large scale frauds ...

We examine whether rational investor responses to information uncertainty explain properties of and returns to accounting-based trading anomalies. We proxy for information uncertainty with two measures of earnings quality: the standard deviation of the residuals from a Dechow and Dichev [2002] model relating accruals to cash flows, and the absolute value of performanceadjusted abnormal accruals...

This paper uses administrative data on schooling and earnings from Texas to estimate quantile treatment effects of college quality on earnings. We proxy college quality using the college sector from which students graduate and focus on identifying how graduating from UT-Austin, Texas A&M or a community college affects the distribution of earnings relative to graduating from a non-flagship unive...

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 ...

This study examines how takeover decisions are influenced by the quality of information in target firms’ earnings. We find that bidders are more likely to prefer negotiations in deals involving targets with poor earnings quality. Moreover, in such deals, earnings quality and takeover premiums are negatively related, suggesting that bidders obtain valuable private information through negotiation...

some of inherent limitations of accrual accounting make the actual earnings and accounting earnings different. so assessment of reported earnings quality has allocated extensive bulk of accounting studies to itself. the decrease information quality such as earnings quality increases information risk and also the investor’s risk. it’ll increase their expected return. since cost of equity is the ...

We conduct a laboratory experiment to study how advice affects the gender gap in the entry into a real-effort tournament. Our experiment is motivated by the concerns raised by approaching the gender gap through affirmative action. Advice is given by subjects who have already had some experience with the participation decision. We show that advice improves the entry decision of subjects, in that...

Researchers who study violence against women often face problems when trying to understand the causes of individual changes in the context of group differences, targeted interventions, and institutional shifts. The authors explore these problems through research on the connections among women's earnings, welfare, and protection orders. The authors use multigroup, piecewise, latent growth curve ...