Publications

02 Dec 2013
News

Companies Choreograph Earnings Calls to Hide Bad News

Keywords: Securities, Commodities, and Other Financial Investments; Finance

2010
Working Paper

Just Say No to Wall Street: Putting A Stop to the Earnings Game

By: Joseph Fuller and Michael C. Jensen

Putting an end to the "earnings game" requires that CEOs reclaim the initiative by avoiding earnings guidance and managing expectations in such a way that their stocks trade reasonably close to their intrinsic value. In place of earnings forecasts, management should... View Details

Keywords: Stocks; Performance Expectations; Goals and Objectives; Risk and Uncertainty; Growth and Development Strategy; Decisions; Risk Management; Budgets and Budgeting; Earnings Management; Value; Projects

July 2017
Article

What Do Measures of Real-Time Corporate Sales Tell Us About Earnings Surprises and Post-announcement Returns?

By: Kenneth A. Froot, Namho Kang, Gideon Ozik and Ronnie Sadka

We develop real-time proxies of retail corporate sales from multiple sources, including approximately 50 million mobile devices. These measures contain information from both the earnings quarter (within quarter) and the period between that quarter's end and the... View Details

Keywords: Announcements; Business Earnings; Sales; Retail Industry

September 2005 (Revised January 2006)
Supplement

Restating Revenues and Earnings at INVESTools, Inc. (B)

By: Michael D. Kimbrough and F. Warren McFarlan

Keywords: Earnings Management; Revenue; Financial Services Industry

Purchase

September 2005 (Revised January 2006)
Supplement

Restating Revenues and Earnings at INVESTools, Inc. (D)

By: Michael D. Kimbrough and F. Warren McFarlan

Keywords: Earnings Management; Revenue; Financial Services Industry

Purchase

30 Apr 2009
Working Paper Summaries

Earnings Quality and Ownership Structure: The Role of Private Equity Sponsors

Keywords: by Sharon P. Katz; Financial Services

02 Aug 2021
Research & Ideas

What If Closing the Wage Gap Means Everyone Earns Less?

It’s a sticky but common dilemma for managers: A valued employee finds out that a coworker earns more, gets upset, and demands a raise. If gender or race figure into the wage gap, tensions can escalate fast. Companies, including Whole... View Details

Keywords: by Avery Forman

Article

Why Do Pro Forma and Street Earnings Not Reflect Changes in GAAP? Evidence from SFAS 123R

By: Ian D. Gow, Mary E. Barth and Daniel Taylor

This study examines how key market participants—managers and analysts—responded to SFAS 123R's controversial requirement that firms recognize stock-based compensation expense. Despite mandated recognition of the expense, some firms' managers exclude it from pro forma... View Details

Keywords: Motivation and Incentives; Employee Stock Ownership Plan

Read Now

Summer 2013
Article

A Tale of Two Stories: Sustainability and the Quarterly Earnings Call

By: Robert G. Eccles and George Serafeim

One of the challenges companies claim to face in making sustainability a core part of their strategy and operations is that the market does not care about sustainability, either in general or because the time frames in which it matters are too long. The response of... View Details

Keywords: Sustainability; Communication; Integrated Corporate Reporting; Investment; Environmental Sustainability

Read Now

February 2006
Article

Earnings Manipulation, Pension Assumptions, and Managerial Investment Decisions

By: Daniel B. Bergstresser, Mihir A. Desai and Joshua Rauh

Keywords: Profit; Compensation and Benefits; Management; Investment; Decision Making

November 29, 2023
Article

To Earn Trust, Climate Alliances Need to Improve Transparency

By: Peter Tufano, Chris Thomas, Knut Haanaes, Matteo Gasparini, Robert Eyres and Christopher Chapman

Businesses are increasingly joining together as part of climate alliances to accelerate the transition away from fossil fuels. But these alliances raise antitrust issues: When competitors collaborate, it can come at the expense of customers or workers. To mitigate... View Details

Keywords: Climate Change; Partners and Partnerships; Corporate Disclosure; Energy Sources

Register to Read

13 May 2010
Working Paper Summaries

Just Say No to Wall Street: Putting A Stop to the Earnings Game

Keywords: by Joseph Fuller & Michael C. Jensen; Financial Services

2017
Working Paper

Learning by Doing: The Value of Experience and the Origins of Skill for Mutual Fund Managers

By: Elisabeth Kempf, Alberto Manconi and Oliver Spalt

Learning by doing matters for professional investors. We develop a new methodology to show that mutual fund managers outperform in industries where they have obtained experience on the job. The key to our identification strategy is that we look "inside" funds and... View Details

Keywords: Fund Managers; Experience and Expertise; Performance; Forecasting and Prediction

31 Aug 2021
News

Trust: How To Earn It, Keep It, And Assess It In Others

09 May 2016
Working Paper Summaries

What Do Measures of Real-Time Corporate Sales Tell Us About Earnings Surprises and Post-announcement Returns?

Keywords: by Kenneth A. Froot, Namho Kang, Gideon Ozik, and Ronnie Sadka; Financial Services

March 2006
Teaching Note

Restating Revenues and Earnings at INVESTools Inc. (TN) (A), (B),(C) and (D)

By: Michael D. Kimbrough and F. Warren McFarlan

Keywords: Earnings Management; Revenue; Financial Services Industry