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Accounting

Bursting The Bubble
2 years ago

Bursting The Bubble

By  •  Subprime Mortgages

Researchers found that competition led to a smaller increase in housing prices before the crisis and smaller decreases in housing prices during the crisis. They also show that greater competition led to higher mortgage rejection rates, with the effect being strongest for the highest-risk mortgages.

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Mind the GAAP
2 years ago

Mind the GAAP

By  •  Accounting

The ongoing debate about whether accounting should be based on principles, or rules, should focus on auditors rather than on standard-setting institutions. Letting auditors themselves evaluate fair presentation, independent of GAAP, would allow them to judge accounting practice by principles rather than by checking off boxes stating rules.

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No News Is Bad News
2 years ago

No News Is Bad News

By  •  Investing

Earnings report delays generally lead to drops in stock prices. But managers can influence the market response by sharing information about the cause of a delay.

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Timing Is Everything
2 years ago

Timing Is Everything

By  •  Rethinking SEC Rules

Traders with advance access were moving markets before the public got the same information. The effects were especially lopsided for firms with institutional investors that base their stock positions on short-term earnings. Subscribers also had a striking edge after good-news press releases, which are easier for traders to use in investing.

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After Hours
2 years ago

After Hours

By  •  Stock Market

Analysts not only don’t rehash the corporate line — they give investors new and useful information. The new findings don’t indicate that analysts’ revisions are necessarily correct. They simply offer authentically new information. Investing is still risky business, even when the analysts do their part to inform.

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In Praise Of Know-It-Alls
2 years ago

In Praise Of Know-It-Alls

By  •  Institutional Investing

It’s been thought that as the number of informed investors rises, and competition among those investors increases, such advantage is reduced, as is the price of capital. For these firms, encouraging rivalry by widening the pool of informed investors might help reduce their cost of capital.

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