Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2016

Do Analysts and their Employers Value Access to Management? Evidence from Earnings Conference Call Participation

Vanitha RAGUNATHAN , Ling CEN, Jing CHEN, Sudipto DASGUPTA
The literature examining analyst activity assumes that access to management is valued by analysts and their employers. We propose a readily observable measure of access: how often an analyst is invited to be among the first to ask questions in the Q&A session of an earnings conference call. Thes...
Keywords: Career Outcomes, Analyst Forecasts and Recommendations, Earnings Conference Calls
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2016

Deleting Unreported Innovation

David REEB, Ping-Sheng KOH, Elvira SOJLI, Wing Wah THAM, Wendun WANG
The absence of observable innovation data for a firm often leads us to exclude or classify these firms as non-innovators. We assess the reliability of six methods for dealing with unreported innovation using several different counterfactuals for firms without reported R&D or patents. These tests...
Keywords: bias, Listwise Deletion, innovation, Measuring Innovation, Multiple Imputation, Non-patenting Firms, Unreported R&D, patents
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Annual Conference

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Accounting

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May 2016

Harnessing the Wisdom of Crowds

Zhi DA, Xing HUANG
When will a large group provide an accurate answer to a question involving quantity estimation? We empirically examine this question on a crowd-based corporate earnings forecast platform (Estimize.com). By tracking user activities, we monitor the amount of public information a user views before maki...
Keywords: Wisdom of Crowds, Herding, Naive Learning, Social Learning, Group Decision Making, Earnings Forecast
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Annual Conference

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Accounting

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May 2016

Does fiduciary duty to creditors reduce debt covenant violation avoidance behavior?

Shai LEVI, Benjamin SEGAL, Dan SEGAL
Financial reports should provide useful information to shareholders and creditors. Directors, however, normally owe fiduciary duties to equity holders and not creditors. We examine whether this slant in fiduciary duties affects the extent to which firms use financial engineering to circumvent debt c...
Keywords: Debt Structuring, Director Fiduciary Duties, Board Independence
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Annual Conference

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Accounting

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May 2016

Capital-Market Consequences of Asymmetric Output-Price Rigidities

Jin XIE
Firms adjust output prices to cost decreases with a delay relative to cost increases. I document firms’ operating income becomes less persistent when their input costs decrease than when their costs increase. The stocks of firms slowly cutting output prices due to asymmetric output-price rigiditie...
Keywords: New Keynesian economics, Downward nominal price rigidities, Trend inflation, Earnings persistence, stock market
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