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Our study documents a systematic timing pattern of annual report disclosures, which is useful for investors to predict future earnings, especially in anticipating bad news in China's emerging market where information about future earnings is very limited.
We also find that the future earnings response coefficient of earnings reported under Chinese GAAP continues to increase, indicating that the timeliness of recognition of earnings reported under Chinese GAAP worsened after a series of harmonization and convergence with IFRS in China.
Using novel earnings calendar data, we show that firms’ advanced scheduling of earnings announcement dates foreshadows their earnings news.
Moreover, it would appear that stock market investors see through earnings management and re-adjust the relationship between reported earnings and firm valuation in the year earnings are subject to external investigations by the tribunal.
The results confirm the earnings management hypothesis.
Ultimately, our study confirms both the methods and results of previous work on Venmo, opening up the possibility for future work to study if changes unfold in the next era of the platform.
We also document that the change in the information content of earnings for more informative reconcilers was contemporaneous with a change in earnings attributes for these firms.

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What forecasting techniques are commonly employed in hospitality operations to gain a competitive advantage?
5 answers
In hospitality operations, various forecasting techniques are utilized to gain a competitive edge. These include Seasonal ARIMA Models for predicting room sales, fee-oriented strategies coupled with ownership structure analysis to enhance analyst forecast accuracy, and models inspired by cubic smoothing splines to forecast demand curves per rate class over time. Additionally, the use of long short-term memory (LSTM) models based on recurrent neural networks has shown improved forecasting accuracy in predicting hotel reservations. By leveraging these techniques, hospitality businesses can optimize revenue management strategies, allocate resources efficiently, plan marketing activities, and make informed decisions to stay ahead in the competitive industry landscape.
What were the primary causes of the financial crisis in Turkey in 2001?
5 answers
The financial crisis in Turkey in 2001 was primarily caused by a combination of factors. These included political disagreements leading to a severe financial crisis, such as the argument between Prime Minister Bulent Ecevit and President Ahmet Necdet Sezer over combating public-sector corruption, which triggered a collapse of the exchange rate system. Additionally, the crisis stemmed from insufficient regulations, inadequate depth of capital markets, excessive lending, restricted interest rates, and chronic inflation. Furthermore, the crisis was exacerbated by the loss of solvency in the banking system due to liquidity shortages, capital deficiencies, and the failure of funds transfer, impacting the financial sector significantly. The complex interplay of these political and economic factors culminated in the financial crisis that hit Turkey in 2001.
How asset revaluation impact asset management?
9 answers
Asset revaluation significantly impacts asset management across various dimensions, influencing financial reporting, investor confidence, and strategic decision-making. The revaluation of assets, particularly in the public sector, has been shown to result in an appreciation of fixed assets, notably land, thereby affecting the value of fixed assets on government balance sheets and encouraging improvements in asset administration and management. This process necessitates ongoing supervision and control to optimize asset function and enhance state revenues. Similarly, in the corporate sector, asset revaluation decisions are influenced by factors such as firm size and macro-economic policy environment, with significant effects on firm performance. The practice also has implications for the transparency and timeliness of financial reporting, as it can decrease stock price crash risk by improving the relevance of disclosed information, although this benefit varies with the firm's financial health and information asymmetry. Moreover, asset revaluation is associated with higher discretionary accruals, indicating potential earnings management and reflecting higher agency problems. This suggests that revaluation decisions might be driven by managerial incentives to present a more favorable financial position. This perspective is supported by findings that companies often revalue assets to enhance investor confidence and sustain company viability, particularly in entrepreneurial ventures. However, the quality of the revaluation process and the expertise of valuation professionals are critical to ensuring reliable outcomes and avoiding distorted financial representations. The motivation behind asset revaluation can also stem from strategic financial management, such as influencing net asset value and debt-to-equity ratios to manage political costs and debt covenants. In emerging markets like Pakistan, management incentives for asset revaluation include reducing contracting and political costs, although the effectiveness of these strategies varies. Finally, the decision to revalue assets can be influenced by fiscal policies, with companies often aiming to minimize tax liabilities, thereby affecting financial ratios and stakeholders' perception of the company's financial health. Overall, asset revaluation plays a crucial role in asset management by impacting financial metrics, regulatory compliance, and strategic financial planning.
Does inequality causes union memebrship decline?
5 answers
Inequality indeed plays a significant role in the decline of union membership. Research indicates that as earnings inequality rises, union density tends to decrease. The decline in unionization is associated with changes in the income distribution, where average union members have become relatively better off, potentially leading to reduced support for wage solidarity and redistributive policies. Moreover, cultural attitudes deeply rooted in historical processes like colonization have influenced the decline in union membership density and the rise in inequality in the United States, highlighting the impact of cultural values on these trends. Overall, the relationship between inequality and union membership decline is complex, involving economic, cultural, and political factors.
Is the accounting background of executives related with the liquidity of the firm?
4 answers
The accounting background of executives does have implications for firm liquidity. Research shows that CEOs with accounting backgrounds exhibit lower levels of accounting conservatism, which can impact financial reporting policies. Additionally, executives' centrality in networks affects stock liquidity costs, with more central executives linked to improved liquidity and narrower spreads. Furthermore, the quality of accounting information and executives' backgrounds influence credit availability for small and medium-sized enterprises (SMEs), with better accounting information or financial/political executive backgrounds enhancing short-term credit availability. Therefore, the accounting background of executives can indeed be related to the liquidity of the firm, influencing financial reporting decisions, stock liquidity costs, and credit availability.
How do artificial neural networks model the structure and function of the human brain to process complex data?
4 answers
Artificial Neural Networks (ANNs) mimic the human brain's structure and function to process complex data. ANNs consist of interconnected nodes, analogous to neurons in the brain, which receive and process information through weighted connections, similar to synapses in the brain. Just like biological neurons communicate to learn, ANNs learn by example and through interconnected nodes. The parallel distributed processing nature of ANNs mirrors the brain's ability to store and retrieve information in a distributed manner, enabling efficient data processing. By simulating the brain's neural connections and learning mechanisms, ANNs can model complex patterns, make predictions, and process various types of data, resembling the brain's cognitive functions.
How do physical or local markets complement housing?
5 answers
Physical or local markets complement housing by being shaped through power-filled negotiations involving buyers, sellers, and market professionals, as highlighted in a social analysis of housing markets. Local housing market areas are inherently difficult to identify due to their localized nature, with potential buyers having limited search areas and builders having local construction preferences. The relationship between urban form and local housing markets is explored, emphasizing the importance of understanding the physical attributes of neighborhoods and housing characteristics in determining market dynamics. Additionally, defining submarkets based on physical house type rather than market price or social class category is crucial for meaningful evaluation and operational basis in local housing markets. This comprehensive approach underscores the intricate interplay between physical attributes, market dynamics, and social factors in local housing markets.
What is a non-robust cut in branch-cut-and-price algorithms?
4 answers
A non-robust cut in branch-cut-and-price algorithms refers to a type of constraint used to strengthen the lower bounds in optimization problems, particularly in vehicle routing scenarios. These cuts are designed to enhance the algorithm's efficiency and solution quality. They are utilized to improve the robustness of routing designs against uncertainties in customer demands and travel times, ensuring feasible solutions under varying conditions. Non-robust cuts play a crucial role in enhancing the effectiveness of branch-price-and-cut algorithms by incorporating advanced techniques like subset-row inequalities and infeasible path elimination constraints. By integrating these cuts, the algorithms can achieve better performance in solving complex routing problems with uncertain parameters, ultimately leading to more reliable and optimized solutions.
What are the advantages and disadvantages of state-owned enterprises?
5 answers
State-owned enterprises (SOEs) have advantages such as providing essential services to citizens, contributing significantly to public finances, and playing crucial roles in various economies. However, they face challenges like political interference, financial constraints, regulatory burdens, and management inefficiencies, which can hinder their transparency and effectiveness. SOEs often have to balance profit objectives with public mandates, leading to potential conflicts and weaker performance compared to private firms. Moreover, issues like earnings management, especially real earnings manipulation, can arise in SOEs, impacting their credibility and sustainability in the supply chain. To mitigate these challenges, governments must adopt suitable management models to enhance efficiency, service quality, and financial stability in state-owned enterprises.
What factors contributed to Transsion Holdings' success in capturing a leading position in the African market?
5 answers
Transsion Holdings' success in capturing a leading position in the African market can be attributed to various factors. Firstly, the company's ability to navigate firm- and country-specific antecedents of African M&A activity, indicating a nuanced understanding of the market dynamics. Additionally, Transsion Holdings might have leveraged the rapid increase in African stock markets since 1989, which came with efforts to privatize state-owned enterprises, offering high expected returns and attracting international investors. Moreover, the company's success could stem from its strategic approach to equity ownership in subsidiaries, where control of critical operational variables directly related to success, despite a J-shaped relationship between percent equity ownership and subsidiary success. Overall, Transsion Holdings' success in Africa likely results from a combination of market understanding, strategic investments, and operational control.
Does a background in accounting of executives improve the ability to pay back long-term debt of the firm?
4 answers
CEOs with accounting backgrounds can influence a firm's ability to pay back long-term debt. Research shows that firms led by CEOs with accounting backgrounds exhibit lower levels of accounting conservatism, recognizing bad news quickly, which can enhance debt repayment ability. Additionally, the quality of accounting information and executives' backgrounds impact credit availability and loan terms for small and medium-sized enterprises (SMEs). Better accounting information quality or executives' financial/political backgrounds can improve short-term credit availability, with accounting quality playing a crucial role in long-term credit availability. Furthermore, granting long-term accounting-based compensation plans (LTAPs) to CEOs leads to lower borrowing costs, improved debt repayment ability, reduced risk-taking incentives, and enhanced credit ratings, ultimately aiding in reducing credit risk and facilitating debt repayment.