Alina Lerman researches the role of accounting information in capital markets, investor sophistication, corporate mandatory and voluntary disclosure, and accounting regulation. She teaches in the MBA, Executive MBA and Ph.D. programs. Prior to her own graduate studies, Lerman worked in the securities litigation and forensic accounting practice of LECG.
Areas of Expertise (5)
New York University: Ph.D., Accounting
New York University: B.S., Economics, summa cum laude
Information transfer and conference callsReview of Accounting Studies
2018 A long-standing literature documents intra-industry capital market co-movements around earnings releases, yet the dynamics of these information transfers remain largely unexplored. We provide evidence on both the sources and channels of information transfers by separating two distinct events within the reporting window using intra-day data and by exploring potential mechanisms of information flows.
The Changing Landscape of Accrual AccountingJournal of Accounting Research
2015 A fundamental property of accrual accounting is to smooth temporary timing fluctuations in operating cash flows, indicating an inherent negative correlation between accruals and cash flows. We show that the overall correlation between accruals and cash flows has dramatically declined in magnitude over the past half century and has largely disappeared in more recent years.
Who, if anyone, reacts to accrual information?Journal of Accounting and Economics
2012 We show that the vast majority of investors ignore value-relevant accruals information when it is first released, but that investors who initiate trades of at least 5,000 shares tend to transact in the proper direction. These investors trade on accruals information only when the previously-announced earnings signal is non-negative.
Anticipatory and Implementation Effects of FIN 46 on the Behavior of Different Market ParticipantsAsia-Pacific Journal of Accounting & Economics
2012 We examine whether Financial Accounting Standards Board (FASB)-mandated modifications of the consolidation rules (FIN 46 and FIN 46R) resulted in perceptible changes in market participants’ decisions as manifested in a variety of financial indicia.
The new Form 8-K disclosuresReview of Accounting Studies
2010 The Securities and Exchange Commission (SEC) has mandated new disclosure requirements in Form 8-K, which became effective on August 23, 2004. The SEC expanded the list of items that have to be reported and accelerated the timeliness of these reports. This study examines the market reactions to 8-Ks filed under the new SEC regime and investigates whether periodic reports (10-K/Qs) became less informative under the new 8-K disclosure rules. We observe that the newly required 8-K items constitute over half of all filings and that most firms disclose the required items within the new shortened period (four business days). We find that all disclosed items (old and new) are associated with abnormal volume and return volatility around both the event and the SEC filing dates, and some items have significant return drifts after the SEC filings.
Individual investors' attention to accounting information: Message board discussionsSSRN
2010 Accounting standard setters and financial information providers are interested in individual investors’ use of accounting information but find it difficult to assess with conventional data sources. Financial message boards provide a unique medium with which to analyze individuals’ attention to accounting information on a large scale and in great detail.