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AAA Study Urges Skepticism With Earnings Reports

October 16, 2018

Press releases that tout a company’s earnings in the headline should be looked at more skeptically, according to a new academic study. The study, by Xuan Huang of California State University Long Beach, Alex Nekrasov of the University of Illinois at Chicago, and Siew Hong Teoh of the University of California, Irvine, questioned “managers’ opportunistic incentive to highlight temporary good performance by headlining.” It appears in in the November issue of "The Accounting Review." Click here for more information.