Firms are more likely to face accounting-related lawsuits for overstating their earnings or assets than for understating them because it’s easier to demonstrate investor harm with overstatements. So erring on the conservative side can reduce a firm’s legal costs.

New research shows that information public companies reveal in SEC disclosures cuts down their competitive advantage faster.

Research by Michael Kimbrough Each quarter brings a flurry of news releases coming from publicly traded companies announcing their earnings, often with an explanation for the good or bad numbers. The companies have a lot riding on the highly scrutinized earnings reports: Stock price changes can be significant as the market reassesses the future prospects of a firm. 

Research by Michael Kimbrough Conference calls around merger announcements help companies gain credibility and favorably influence stock prices, but only if your CEO is well-spoken and well-prepared. Investors react more favorably to conference calls because they allow managers to provide more information and directly address investor’s questions and concerns.

The Smith School is honored to welcome the following new faculty this fall. Department of Management and Organization Rajshree Agarwal, Chaired Professor in Entrepreneurship and Strategy, received her Ph.D. from the State University of New York, Buffalo.

Management forecasts – in particular, the parts that are wrong – may contain predictive information about future earnings even after earnings announcements.