This paper provides evidence that analysts who made a sequence of accurate predictions of earnings relative to the median forecast tend to be relatively more inaccurate and more out of consensus in their subsequent earnings prediction. This phenomenon is economically and statistically meaningful. The results are robust to different estimation techniques and different control variables. Our find...

This paper uses high frequency data to evaluate whether information asymmetry in the market is reduced as a result of corporate earnings and dividend announcements. Changes in the level of information asymmetry due to the announcements are proxied by the rate of change in trading volume, bid-ask spread, cumulative abnormal returns, and order imbalance. Our results show support for an informatio...

This paper is about income and poverty dynamics and their socioeconomic correlates. The first half of the paper aims to establish some of the salient facts for Britain, applying the pioneering methods of Bane and Ellwood (1986). Important for poverty dynamics are changes in labour earnings from persons other than the household head, changes in non-labour income (including benefits), and changes...

This paper examines the relation between earnings management and corporate governance in China by introducing a tunneling perspective. We document systematic differences in earnings management across the universe of China's listed companies during 1999–2005, and empirically demonstrate that firms with higher corporate governance levels have lower levels of earnings management. We study two Chin...

This study examines the impact of the implementation of the Code of Corporate Governance for Listed Companies in China (the Code) in 2002 on constraining earnings management in Chinese listed firms. We find the magnitudes of both discretionary accruals and related-party transactions in Chinese listed firms decrease significantly after the promulgation of the 2002 Code, and moreover, the Code is...

Background: According to the sustainable development theory, managers have a high incentive to observe ethical principles in business operations. However, some of the immoral behaviors of managers in earnings manipulation lead to ethical failures in companies. Accordingly, the purpose of this study was to analyze the relationship between sustainable development performance and managers’ immoral...

We present ongoing work on a model-driven decision support system (DSS) that is aimed at providing guidance on reflecting and adjusting judgmental forecasts. We consider judgmental forecasts of cash flows generated by local experts in numerous subsidiaries of an international corporation. Forecasts are generated in a decentralized, non-standardized fashion, and corporate managers and controller...

This paper theoretically and empirically investigates the role of CEO career concerns on accruals based and real activities earnings management. We develop a model of earnings management, rooted in career concerns, that alternatively incorporates the features of the accrual accounting performance measurement system and the negative value-destroying effects of real activities earnings management...

In this study, we employ an innovative new methodology suggested by Bernhardt et al. (2006) to examine the herding (or anti-herding) behavior of German analysts in case of earnings forecasts. Our methodology avoids well-known shortcomings often encountered in related studies, such as, e.g., correlated information signals, unexpected common shocks to earnings, systematic optimism or pessimism or...