Earnings Quality, Insider Trading, and Cost of Capital

By David Aboody, John S. Hughes, Jing Liu. 2003

434 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/b9e844fc0004f1f28fc2dc7a954fc6a01beaff80

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Citations in the corpus

The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research (2015, background): “That said, several studies document a negative relation between reporting quality proxies and firms’ cost of equity (e.g., Aboody et al., 2005; Francis et al., 2005; Ecker et al., 2006; Kim and Qi, 2010; Ogneva, 2012; Barth et al., 2013).”
Do Independent Directors Cause Improvements in Firm Transparency (2014, methodology): “Prior research (e.g., Aboody et al., 2005; Francis et al., 2005) suggests that when the variance of the residuals from this regression is higher, earnings quality is lower, and information asymmetry is higher.”
R2 and Idiosyncratic Risk are not Interchangeable (2014, background): “In particular, Aboody, Hughes, and Liu (2005) ﬁnd that insiders are able to execute more (less) proﬁtable trades in ﬁrms with worse (better) earnings quality.”
Accounting restatements and information risk (2010, positive): “(2005) and Aboody et al. (2005) identify the Dechow and Dichev (2002) accrual quality (AQ) metric as a measure of earnings quality and calculate AQ factor mimicking returns in order to test the pricing of earnings quality.”
Accounting Quality, Stock Price Delay and Future Stock Returns (2013, positive): “We subsequently examine whether firms with high accounting-associated delay have higher future stock returns arising from adverse selection faced by buyers of delayed stocks (e.g., Diamond and Verrecchia, 1991; Easley and O " Hara, 2004; Aboody et al., 2005; Francis et al., 2005).”
Accruals Quality, Information Risk and Cost of Capital: Evidence from Australia (2009, background): “Therefore, their theory is not inconsistent with studies that presume an existence of a systematic ‘information risk’ factor (e.g., FLOS, 2005; and Aboody et al., 2005).”
Is Accruals Quality a Priced Risk Factor (2008, critical): “Thus, while a reader who is familiar with asset-pricing tests might glean from Aboody et al. (2005) that the FLOS result is weak, the point of our paper is to illustrate that the returns-based tests in FLOS are misspecified, and that well-specified asset-pricing tests provide no evidence that AQ is ”
How Does Financial Reporting Quality Relate to Investment Efficiency (2009, positive): “The first measure, accruals quality (AQ), is derived from prior work (Dechow and Dichev, 2002; McNichols, 2002) and has been used extensively in the prior literature (e.g., Aboody et al., 2005; Francis et al., 2004, 2005; Core et al., 2008).”