Optimistic Reporting and Pessimistic Investing: Do Pro Forma Earnings Disclosures Attract Short Sellers?

Abstract

Contemporary Accounting ResearchVolume 31, Issue 1 p. 67-102 Article Optimistic Reporting and Pessimistic Investing: Do Pro Forma Earnings Disclosures Attract Short Sellers?† Theodore E. Christensen, Theodore E. Christensen Brigham Young UniversitySearch for more papers by this authorMichael S. Drake, Michael S. Drake Brigham Young UniversitySearch for more papers by this authorJacob R. Thornock, Jacob R. Thornock University of WashingtonSearch for more papers by this author Theodore E. Christensen, Theodore E. Christensen Brigham Young UniversitySearch for more papers by this authorMichael S. Drake, Michael S. Drake Brigham Young UniversitySearch for more papers by this authorJacob R. Thornock, Jacob R. Thornock University of WashingtonSearch for more papers by this author First published: 09 October 2012 https://doi.org/10.1111/1911-3846.12009Citations: 65 † Accepted by Mary Harris Stanford. We appreciate helpful comments from Mary Harris Stanford and two anonymous referees that significantly improved the paper. We also appreciate suggestions from Bob Bowen, Rick Mergenthaler, Kari Olsen, Mark Soliman, Ed Swanson, Jeff Wilks, David Wood, and participants at the Brigham Young University, IE Business School, Santa Clara University, and Texas A&M University workshops. We are especially grateful to Jenny Tucker for help and insights into modeling self-selection. We appreciate the valuable research assistance of Minkwan Ahn, Kris Allee, Joe Bartlett, Jeff Bednar, Dirk Black, Bryant Blanchard, Brandon Buhler, Brandon Butler, Nathan DeFries, Leo Ebbert, Jonathan Fife, Josh Gagon, Kirk Gibb, Bryan Graden, Nick Guest, Jeff Hoopes, Alicia Ingalls, Rob Jenson, Robert Judd, Chad Larson, Jon Liljegren, Sam Mautz, Derek Moody, Greg Packer, Spencer Pierce, Heidi Prescott, John Prete, Willis Pueblo, Rob Shaw, Jacob Smith, Roy Schmardebeck, Dale Stewart, Scott Tandberg, Patrick Walsh, Adam Ward, Chris Williams, Devin Williams, Ty Woods, Donnie Young, and Luke Zimmerman. Christensen expresses appreciation to Brigham Young University for student mentoring grants that made this research possible. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Citing Literature Volume31, Issue1Spring 2014Pages 67-102 RelatedInformation