Publisher Summary This chapter provides a selective review of recent work in behavioral
finance. Modern finance assumes that the study of substantively rational solutions to …

Published in 1997, this text focuses on the conundrum between the academics ability to
distinguish between failing and non-failing businesses with models of over 85.5 per cent …

This paper investigates whether stock prices reflect information about future earnings
contained in the accrual and cash flow components of current earnings. The extent to which …

This paper examines whether institutional investors create or reduce incentives for corporate
managers to reduce investment in research and development (R&D) to meet short-term …

This paper investigates circumstances under which accruals are predicted to improve
earnings' ability to measure firm performance, as reflected in stock returns. The importance …

This study seeks to discriminate between competing explanations of" post-earnings-
announcement drift." Ball and Brown [1968] were the first to note that even after earnings are …

I review empirical research on the relation between capital markets and financial statements.
The principal sources of demand for capital markets research in accounting are fundamental …

The basic paradigm of asset pricing is in vibrant flux. The purely rational approach is being
subsumed by a broader approach based upon the psychology of investors. In this approach …

This paper models firms' choices between alternative means of presenting information, and
the effects of different presentations on market prices when investors have limited attention …

Evidence presented here is consistent with a failure of stock prices to reflect fully the
implications of current earnings for future earnings. Specifically, the three-day price …