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Positive And Negative Information Transfers From Management Forecasts, Yongtae Kim, Michael Lacina, Myung Seok Park
Positive And Negative Information Transfers From Management Forecasts, Yongtae Kim, Michael Lacina, Myung Seok Park
Accounting
We examine positive and negative information transfers associated with management earnings and revenue forecasts. Positive information transfers are due to industry commonalities whereas negative information transfers are caused by competitive shifts. We argue that positive and negative intra-industry information transfers offset each other and lead to an overall finding of no information transfers even though they exist. We also conjecture that the type of information transfers from the same management forecast can be positive or negative based on the characteristics of the information receiver. We hypothesize positive information transfers to non-rival firms and negative information transfers to rivals. Consistent with …
Ethics And Disclosure: A Study Of The Financial Performance Of Firms In The Seasoned Equity Offerings Market, Hoje Jo, Yongtae Kim
Ethics And Disclosure: A Study Of The Financial Performance Of Firms In The Seasoned Equity Offerings Market, Hoje Jo, Yongtae Kim
Accounting
In this article, we examine the association between ethics and disclosure and the impact of this association on the long-term, post-issue performance of seasoned equity offerings (SEOs). We argue that firms with extensive disclosure are less likely to face information problems, and more likely to lead to active shareholder monitoring, and therefore, engage in fewer unethical activities, such as aggressive earnings manipulation, and have better long-term, post-issue performance. Consistent with these predictions, this study presents evidence that disclosure is negatively related to unethical earnings manipulation and positively associated with long-term, post-issue performance. In particular, we find that long-term, post-issue SEO …