Publications

May 2022
Article

Investment as the Opportunity Cost of Dividend Signaling

By: Zach Kaplan and Gerardo Pérez Cavazos

We provide evidence that firms with weak investment opportunities (those whose current earnings justify a greater valuation than firms with strong investment opportunities) signal their permanent earnings level through their dividends. In the cross-section, we show... View Details

Keywords: Dividends; Earnings; Investment Opportunities; Payout Policy; Signaling; Capital Structure; Business Earnings; Investment; Opportunities

08 Aug 2023
Research & Ideas

Black Employees Not Only Earn Less, But Deal with Bad Bosses and Poor Conditions

A racial salary gap has persisted in the US for more than 50 years among minority groups, with Black people currently earning 30 to 35 percent less than Whites. Now new research shows that in addition to receiving smaller paychecks, Black... View Details

Keywords: by Michael Blanding

2013
Working Paper

Can More Precise Public Information Increase Information Asymmetry? Evidence from Earnings

By: Ian D. Gow, Daniel J. Taylor and R. E. Verrecchia

Article

The CMS New Rule on Ambulatory Surgical Centers Earns Only Partial Credit

By: Junaid Nabi and Robert S. Kaplan

The Centers of Medicare and Medicaid Services (CMS) recently announced that it will be removing more... View Details

Keywords: Ambulatory Care; Payment Policy; Health Care and Treatment; Governing Rules, Regulations, and Reforms

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November 2002
Article

One More Pension Concern: Earnings Boosts From Settlement, Curtailment, and Termination Gains

By: David F. Hawkins

Keywords: Compensation and Benefits

1984
Working Paper

Earnings Variability and Variance Bounds Tests for Rationality of Stock Market Prices

By: Robert C. Merton and Terry A. Marsh

March 2004
Teaching Note

Ford Motor Company: Quality of Earnings Growth Analysis (A) and (B) TN

By: David F. Hawkins

Teaching Note to (9-104-059) and (9-104-063). View Details

Keywords: Auto Industry; Consulting Industry

Research Summary

Do Stock Options Generate Incentives for Earnings Management? Evidence from Accounting Restatements

Co-authored with Natasha Burns View Details

December 1999
Article

A Review of the Earnings Management Literature and its Implications for Standard Setting

By: Paul M. Healy and James Wahlen

Keywords: Money; Management

Article

The Relation between Analysts' Long-Term Earnings Forecasts and Stock Performance following Equity Offerings

By: P. Dechow, A. Hutton and R. Sloan

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

Article

The pay-off for a prestigious college degree is smaller than you think

By: Frederick M. Hess and Joseph B. Fuller

Keywords: Education; Higher Education; Earnings

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September 2020
Article

Analyst Forecast Bundling

By: Michael Drake, Peter Joos, Joseph Pacelli and Brady Twedt

Changing economic conditions over the past two decades have created incentives for sell-side analysts to both provide their institutional clients tiered services and to streamline their written research process. One manifestation of these changes is an increased... View Details

Keywords: Analysts; Earnings Forecasts; Forecast Accuracy; Forecast Bundling; Business Earnings; Forecasting and Prediction

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June 2004
Article

Hiding in Plain Sight? Bad Earnings News Still Mostly Shows Up on Fridays and Mondays

By: Mark Bagnoli, Michael B. Clement and Susan Watts

September 2015
Article

Speaking of the Short-Term: Disclosure Horizon and Managerial Myopia

By: Francois Brochet, Maria Loumioti and George Serafeim

We study conference calls as a voluntary disclosure channel and create a proxy for the time horizon that senior executives emphasize in their communications. We find that our measure of disclosure time horizon is associated with capital market pressures and executives'... View Details

Keywords: Short-termism; Management Styles; Disclosure; Conference Calls; Investing; Earnings Management; Motivation and Incentives; Management Style; Forms of Communication

SSRN

January 2021
Article

ETF Activity and Informational Efficiency of Underlying Securities

By: Lawrence Glosten, Suresh Nallareddy and Yuan Zou

This paper investigates the effect of exchange-traded funds’ (ETFs’) activity on the short-run informational efficiency of their underlying securities. We find that ETF activity increases short-run informational efficiency for stocks with weak information environments.... View Details

Keywords: ETF; Informational Efficiency; Co-movement; Systematic Earnings; Share Lending

June 2015
Supplement

Generating Higher Value at IBM (A): EPS Forecasting Model

By: Benjamin C. Esty and Scott Mayfield

This case analyzes IBM's financial performance and its capital allocation decisions over a 10-year period from 2004-2013, during which IBM returned more than $140B to shareholders through a combination of dividends and share repurchases. During this time, CEO Sam... View Details

Keywords: Dividends; Share Repurchases; Earnings Guidance; Financial Statement Analysis; Financial Ratios; Payout Policy; Earnings Per Share (EPS); Earnings Management; Change Management; Leadership; Transformation; Financial Strategy

November 2017
Teaching Note

Generating Higher Value at IBM (A) and (B)

By: Benjamin C. Esty and E. Scott Mayfield

Teaching Note for HBS Nos. 215-058 and 215-059. View Details

Keywords: Dividends; Share Repurchases; Earnings Guidance; Financial Statement Analysis; Financial Ratios; Payout Policy; Earnings Per Share (EPS); Earnings Management; Change Management; Leadership; Transformation; Financial Strategy