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Full-Text Articles in Business
Does Regulatory Scrutiny Change Investment Behavior? Evidence Of Suboptimal Portfolio Rebalancing After The Financial Crisis, Willie Dion Reddic
Does Regulatory Scrutiny Change Investment Behavior? Evidence Of Suboptimal Portfolio Rebalancing After The Financial Crisis, Willie Dion Reddic
Business Administration - Dissertations
Insurers that show losses are expected to sell tax-free securities and replace them with taxable securities since they can no longer benefit from tax savings. However, rebalancing these portfolios after the financial crisis would entail recognizing additional losses during a time period when their financial performance was under stress and their industry was under increased scrutiny. I examine portfolio rebalancing behavior using the period after the financial crisis as a proxy for increased regulatory scrutiny. I predict and find that insurers with losses subsequent to the financial crisis were less likely to increase their ratio of taxable/nontaxable securities. Insurers may …
Fair Value Measurements And Earnings Management: Evidence From The Banking Industry, Xiaolu Xu
Fair Value Measurements And Earnings Management: Evidence From The Banking Industry, Xiaolu Xu
Accounting - Dissertations
I examine the association between fair value measurements and bank earnings management using financial data for a sample of U.S. bank holding companies from 2009 to 2012. I follow the methodology in Beatty et al. (2002) and find that banks reporting higher recurring basis fair values, especially level 2 fair values and banks reporting increased fair values are more likely to report small earnings increases both in the current year and one-year ahead after controlling for discretionary loan loss provisions, discretionary security gains and losses, and other bank-specific characteristics. By decomposing the fair values into different types, I find that …
Analyst Pessimism And Forecast Timing, Orie E. Barron, Donal Byard, Lihong Liang
Analyst Pessimism And Forecast Timing, Orie E. Barron, Donal Byard, Lihong Liang
Accounting - All Scholarship
In this study, we show that on average relatively pessimistic analysts tend to reveal their earnings forecasts later than other analysts. Further, we find this forecast timing effect explains a substantial proportion of the well-known decrease in consensus analyst forecast optimism over the forecast period prior to earnings announcements, which helps explain why analysts’ longer term earnings forecasts are more optimistically biased than their shorter term forecasts. We extend McNichols and O’Brien’s (1997) and Hayes’ (1998) theory concerning analyst self-selection to argue that analysts with a relatively pessimistic view - compared to other analysts - are more reluctant to issue …