Dan Givoly

TL;DR: In the absence of a generally accepted definition of conservatism, a number of measures of reporting conservatism are identified and examined in this paper, which rely on the accumulation of nonoperating accruals, the timeliness of earnings with respect to bad and good news, characteristics of the earnings distribution and the market-to-book ratio.

TL;DR: The authors found that firms that meet or beat current analysts' earnings expectations (MBE) enjoy a higher return over the quarter than firms with similar quarterly earnings forecast errors that fail to meet these expectations.

TL;DR: In this paper, the authors evaluate the quality of analysts' forecasts as surrogates for the market expectation of earnings and compare it with that of prediction models commonly used in research and find that prediction errors of analysts are more closely associated with security price movements, suggesting that analyst's forecasts provide a better surrogate for market expectations than forecasts generated by time-series models.

TL;DR: In this article, the authors assess the information content of revisions in financial analysts' forecasts of earnings by analyzing the relation between the direction of these revisions and stock price behavior and find that information on revisions in forecasts of EPS is valuable to investors.

TL;DR: The authors examined the power and reliability of the differential timeliness (DT) measure developed by Basu (1997) to gauge reporting conservatism and found that it is sensitive to the degree of uniformity in the content of the news during the examined period, the types of events occurring in the period, and firms' disclosure policies.