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The Anderson School at UCLA prepares students to become effective management leaders in today's complex global business environment. The School is organized into academic areas of study which also form the basis of faculty research. The School also encompasses a number of specialized interdisciplinary research centers.
Anderson School of Management
Information and Technology (31)
Open Access Policy Deposits (348)
S-values: Conventional context-minimal measures of the sturdiness of regression coefficients
This paper proposes a context-minimal range of alternative regression models that is used to generate a range of alternative estimates. A prior distribution is assumed with a zero mean but an ambiguous covariance matrix. The choice of the prior covariance matrix is facilitated by transformation to standardized variables which makes the prior expected R2 equal to the sum of the prior variances. Three different ranges of the prior expected R2 are used to define three different intervals of prior covariance matrices which are used to produce three different sets of s-values.
Earnings Management and the Long‐Run Market Performance of Initial Public Offerings
Issuers of initial public offerings (IPOs) can report earnings in excess of cash flows by taking positive accruals. This paper provides evidence that issuers with unusually high accruals in the IPO year experience poor stock return performance in the three years thereafter. IPO issuers in the most "aggressive" quartile of earnings managers have a three-year aftermarket stock return of approximately 20 percent less than IPO issuers in the most "conservative" quartile. They also issue about 20 percent fewer seasoned equity offerings. These differences are statistically and economically significant in a variety of specifications.