Companies making initial public offerings in Greece were obliged to include next year‟s profit in the new issue prospectuses until the regulations changed to voluntary status. This study takes advantage of these two regulatory regimes and compares the accuracy of earnings forecasts under both mandatory and voluntary disclosure environments. Findings indicate behavioural change, as pessimistic e...

This paper provides a rational explanation for earnings discontinuity in the context of the agency model. A company manager often possesses private information about the project’s expected return. This information is valuable to the firm because early warning that a project is unlikely to succeed allows the firm to fire the manager and to discontinue a project with an expected loss. When issuin...

We document that firms’ management of accounting earnings increased steadily from 1987 until the passage of the Sarbanes Oxley Act (SOX), with a significant increase during the period prior to SOX, followed by a significant decline after passage of SOX. However, the increase in earnings management preceding SOX was primarily in poorly performing industries. We also show that the informativeness...

Forecast combination has been proven to be a very important technique to obtain accurate predictions for various applications in economics, finance, marketing and many other areas. In many applications, forecast errors exhibit heavy-tailed behaviors for various reasons. Unfortunately, to our knowledge, little has been done to obtain reliable forecast combinations for such situations. The famili...

One of the critical challenges of wind power integration is the variable and uncertain nature of the resource. This paper investigates the variability and uncertainty in wind forecasting for multiple power systems in six countries. An extensive comparison of wind forecasting is performed among the six power systems by analyzing the following scenarios: (i) wind forecast errors throughout a year...

The California generation fleet manages the existing variability and uncertainty in the demand for electric power (load). When wind power is added, the dispatchable generators manage the variability and uncertainty of the net load (load minus wind power). The variability and uncertainty of the load and the net load are compared when 8790MW of wind power are added to the California power system,...

The dominant vertical structures for analysis and forecast errors are estimated in midlatitudes using a small ensemble of operational analyses. Errors for fixed locations in the central North Pacific and eastern North America are selected for comparing errors in regions with relatively low and high observation density, respectively. Results for these fixed locations are compared with results fo...