This paper examines the extent of firm level over-investment of free cash flow. Using an
accounting-based framework to measure over-investment and free cash flow, I find evidence that…

This paper extends the work of Sloan (1996. The Accounting Review 71, 289) by linking
accrual reliability to earnings persistence. We construct a model showing that less reliable …

The empirical research examining the association between typical measures of corporate
governance and various accounting and economic outcomes has not produced a consistent …

This paper uses pre‐offer market valuations to evaluate the misvaluation and Q theories of
takeovers. Bidder and target valuations (price‐to‐book, or price‐to‐residual‐income‐model‐…

We examine the relation between the fees paid to auditors for audit and non‐audit services,
and the choice of accrual measures for a large sample of firms. Using our pooled sample, …

Prior research has documented a “kink” in the earnings distribution: too few firms report small
losses, too many firms report small profits. We investigate whether boosting of discretionary …

Existing research indicates that firms with high accruals are more likely to experience future
earnings problems, but that investors' expectations, as reflected in stock prices, do not …

It has been alleged that firms and analysts engage in an "earnings‐guidance game" where
analysts first issue optimistic earnings forecasts and then "walk down" their estimates to a …

CLINICAL SCENARIO A 55-year-old man had his serum cholesterol level measured at a
shopping mall 2 months ago. His cholesterol level was elevated and he comes to you, his …

We develop a comprehensive and parsimonious measure of corporate financing activities
and document a negative relation between this measure and both future stock returns and …