This paper investigates systematic changes in the value-relevance of earnings and book
values over time. We report three primary findings. First, contrary to claims in the professional …

This study provides an explanation for the anomalous significantly negative price‐earnings
relation using the simple earnings capitalization model for firms that report losses. We …

Stock pride change associated with a given unexpected earnings change (the earnings
response coefficient) exhibits cross-sectional and temporal variation. We predict and document …

This paper examines the impact of measuring accruals as the change in successive balance
sheet accounts, as opposed to measuring accruals directly from the statement of cash flows…

We investigate whether firms with strong corporate governance benefit from higher credit
ratings relative to firms with weaker governance. We document, after controlling for firm-specific …

This paper investigates the effect of internal control deficiencies and their remediation on
accrual quality. We first document that firms reporting internal control deficiencies have lower …

We use internal control deficiency (ICD) disclosures prior to mandated internal control
audits to investigate economic factors that expose firms to control failures and managements’ …

The Sarbanes‐Oxley Act (SOX) mandates management evaluation and independent audits
of internal control effectiveness. The mandate is costly to firms but may yield benefits through …

We develop a novel approach to Bell inequalities based on a constraint that the correlations
exhibited by local variable theories must satisfy. This is used to construct a family of Bell …

We assess earning's lack of timeliness and value-irrelavant noise in earnings as explanations
for the weak contemporaneous return-earnings assocation. Earnings lack timeliness …