Simon Business School
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Faculty Profile

Bryce Schonberger
Assistant Professor
Phone: 585.273.4818
Office: 3-160C Carol Simon Hall

Bio

Bryce received his doctoral degree in Accounting from the University of Southern California. His research interests lie in financial accounting with specific interest in fair value accounting, option markets, macro accounting information, and earnings quality.

Teaching Interests

Financial accounting; Capital markets research in accounting; Financial statement analysis

Research Interests

Financial reporting; Macro information in accounting; Accounting information and asset prices; Causal inference; Banking

Professional History

Assistant Professor
University of Rochester, Simon Business School
July 2014 -

Education

University of Southern California, Marshall School of Business - 2014
Ph D
Univeristy of Colorado, Leads School of Business - 2007
MA

Current Research Programs

Economic Determinants of Changes in the Aggregate Earnings-Returns Relation over Time
Prior research documents a negative contemporaneous relation between earnings changes and stock returns at the aggregate level. We find that the aggregate earnings-return relation turns significantly positive in recent years (1992-2013). As explanations for that shift we test over-time shifts in the properties of firm-level earnings and the magnitude of inflation rates. To do so we use the Bureau of Economic Analysis’ (BEA) corporate profits series as an alternative measure of aggregate earnings because it is unaffected by changes in GAAP measurement rules and is adjusted for changes in price levels. While changes in both aggregate GAAP earnings and the BEA’s corporate profits series exhibit a significant negative (positive) relation with aggregate returns in the 1970-1991 (1992-2013) period, changes in aggregate GAAP earnings have incremental explanatory power for aggregate returns beyond the BEA’s corporate profit measure in the 1992-2013 period. Additional analysis reveals that such incremental explanatory power stems from GAAP earnings’ inclusion of non-operating items. We also find that a shift over time in inflation, as well as in the proportion of loss-making firms, contribute to inter-temporal variation in the aggregate earnings-returns relation. The effect of changes in the properties of GAAP earnings and inflation rates over time on the aggregate earnings-return relation is new to the literature.
The effect of brokerage business model on analyst research
Prior research on financial analysts focuses on the production of firm-level estimates of prices and earnings by individual analysts. However, this research stream in accounting largely ignores the business model of brokerage firms that employ financial analysts. To shed light on the effect of the business model on research analyst output, we utilize a hand-collected sample of underwriting activity and financial analyst research output for brokerages. Our initial tests examine whether the relation at the brokerage-level between underwriting activity and analyst output significantly influences the optimism, accuracy, and coverage decisions of individual analysts working at the brokerage. This research will provide evidence on the systematic effect of the existing brokerage business model.
Voluntary Disclosure and Measured Asymmetric Timeliness
We document how voluntary disclosure of management earnings forecasts (MFs) affects the asymmetric timeliness of earnings measured using the Basu (1997) model. The rationale is that MFs affect the extent to which prices lead earnings, which in turn affects the asymmetric timeliness coefficient of the Basu (1997) model. We document the magnitude of the effect by examining MF subsamples formed based on the basis of horizon and news content. We find that for firms issuing MFs of future year earnings (forward-looking MFs), measured asymmetric timeliness is insignificant. In contrast, firms issuing MFs for periods that overlap with the Basu model’s return estimation interval display no evidence of reduced asymmetric timeliness. Further analysis reveals that the weaker asymmetric timeliness of firms issuing forward-looking MFs is concentrated in those that convey more negative news. Asymmetric timeliness is also absent for book-based (i.e., financial statement) measures of asymmetric timeliness, which is consistent with measurement concerns related to the effect of forward-looking MFs on stock returns. Additional tests reveal that the effect of forward-looking MFs on asymmetric timeliness is correlated with the fundamental determinants of conservatism. Our results document how managers’ MF disclosure decisions affect measured asymmetric timeliness separately and distinctly from managerial actions that influence the recognition of news in earnings via the effects of the conservatism imbedded in accounting rules.
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