... and to what extent precluding managers from biasing non-GAAP earnings would be beneficial. For this reason, we rely on structural estimation. Estimating a model allows us to deal with bias in non-GAAP earnings and transitory earnings being unobservable, and to quantify the valuation gains from various...

...; H26; M41; M48. Supplemental material is available, as linked in the text. Editor’s note: Accepted by Cristi A. Gleason, under the Senior Editorship of W. Robert Knechel. 17 07 2020 31 01 2023 23 02 2023 2023 To circumvent these issues, I use structural estimation...

... management forecasts information endowment strategic withholding structural estimation disclosure cost Since the advent of voluntary disclosure theory ( Grossman 1981 ; Milgrom 1981 ; Verrecchia 1983 ; Dye 1985 ), a vast empirical literature in accounting has sought to determine whether...

... is key to understanding the notion of earnings/accounting quality. We structurally estimate our model to empirically parse out these two components of investor uncertainty in an attempt to address the concern that “archival research cannot satisfactorily parse out the portion of managed earnings from...