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SSRN Research Paper Series
The Social Science Research Network’s Research Paper Series includes working papers produced by Stanford GSB the Rock Center.
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Share Repurchases and Intangible Assets
As predicted, firms with more intangible assets are more likely to announce open-market share repurchases and experience more positive announcement returns. Also as predicted, idle cash is positively related to repurchase announcement likelihood…
Shareholder Wealth Effects of the Private Securities Litigation Reform Act of 1995
The purpose of this study is to measure the effect of the Act on firm value by investigating the reaction of common equity prices to the Act’s passage. Because key events late in the legislative process (i.e., a Presidential veto and subsequent…
The Discretionary Use of Present Value-Based Measurements by Property-Casualty Insurers
This study examines whether the reported loss reserves of property-casualty insurers contain a discretionary discount for the time value of money. The results indicate that there is a positive and significant discount rate implicit in the…
The Impact of Securities Litigation Reform on the Disclosure of Forward-Looking Information by High Technology Firms
This study evaluates corporate voluntary disclosure of forward-looking information under the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Using data on earnings and sales forecasts issued by 547 computer,…
Differential Pricing of the Discretionary and Nondiscretionary Components of Loan Fair Values
Using a sample of banks, this study examines the capital market pricing implications of discretionary and nondiscretionary components of loan fair value estimates. We conduct our analysis in two stages. First, we determine the discretionary…
The Association Between Earnings Sensitivity Measures and Market Determined Risk Exposures: The Case of Oil Price Risk for Petroleum Refiners
Using a sample of petroleum refining firms, this paper provides evidence that earnings sensitivity measures analogous to those mandated by the SEC’s (1997) new market risk disclosure rules are positively associated with stock market determined…
The Characteristics and Valuation of Loss Reserves of Property Casualty Insurers
The extent to which management influences accounting recognized in financial statements and the extent to which investors are able to identify such influence are fundamental questions in financial reporting research. This study contributes to…
The Role of Book Value in Equity Valuation: Does the Stock Variable Merely Proxy for Relevant Past Flows?
We propose an alternative explanation for the value-relevance of book value. Specifically, we suggest that book value can have an indirect role in valuation even under an earnings capitalization framework. We first show that past earnings are…
Alternative Valuation Models and the Valuation Parameters of Property-Casualty Insurers' Share Prices
This paper examines the value-relevance of various balance sheet items and earnings streams to the share prices of property-casualty (“P&C”) insurance companies under several alternative valuation model specifications. This study extends…
Institutional Trading and Corporate Performance
Abstract not available.
Measuring the Success of Activity-Based Cost Management and Its Determinants
This paper compares and contrasts alternative measures of activity-based cost management (ABCM) success in models testing ABCM success determinants. Both a priori and factor-analysis approaches are examined. The a priori measures examined are: (1…
On the Association Between Voluntary Disclosure and Earnings Management
This paper investigates the extent to which managers use their accounting discretion to reduce the costs associated with voluntary disclosure in general, and with management forecast errors in particular. The empirical findings are consistent…
The Role of Institutional Investors in Corporate Governance: An Empirical Investigation
Institutional investors, who now own a significant protion of equity in U.S. firms, are often described as transient and myopic owners with no incentives to involve themselves in governance. We examine the validity of this assertion by examining…
Reputation and Performance Fee Effects on Portfolio Choice by Investment Advisers
This paper considers a two-period model of investment management. Investors decide how to reallocate their wealth between two mutual funds managed by different investment advisers after observing the performance of each adviser in the first…
Inventory Rules, Taxation and Institutions' Trading Decisions
This paper examines whether the trading decisions of institutional investors can be explained in part by the effects of taxation on portfolio returns. The trading strategy that maximizes benefits to owners in the absence of taxes on capital gains…
An Empirical Assessment of Voluntary Disclosure Theory
In this paper we examine the determinants of a firm’s level of voluntary disclosure. As a comprehensive measure of a firm’s disclosure level, we use analysts’ evaluations of firms’ disclosures as reported in the Financial Analysts Federation…
Institutional Investment, Corporate Earnings and Managerial Incentives
Abstract not available.
Report Management and the Independent Auditor's Reliance on Management's Report
Abstract not available.
Ownership and Information as Substitutes
This paper analyzes the combination of ownership and signal-based bonus offered by investors to the firm’s manager. As an incentive, stock ownership differs from signal-based bonuses. The risk inherent in ownership is unavoidable, while the risk…
Public Signals and the Equilibrium Allocation of Private Information
Abstract not available.