Elia Ferracuti

Journal Article The Accounting Review · November 1, 2025 ABSTRACTWe examine the relation between debt contract renegotiation costs and contract design. We use a plausibly exogenous shock to expected renegotiation costs arising from a change in the taxation of d ... Full text Cite

Do Firms Smooth Earnings Less When They Can Hedge Noise Better?

Journal Article Accounting Review · March 1, 2025 Firms’ use of accounting discretion to report a smooth earnings profile is commonly believed to be pervasive. We examine whether smoothing, at least partly, reflects managerial attempts to avert unhealthy pressures from outsiders who cannot fully disentang ... Full text Cite

Cost Structure and the Usefulness of Earnings

Journal Article Management Science · February 1, 2025 We investigate the relation between the usefulness of earnings and firm cost structure. We document that the usefulness of earnings to external users decreases in the degree of operating leverage, which measures the proportion of fixed to variable costs, a ... Full text Cite

Political Activism and Market Power

Journal Article Journal of Financial and Quantitative Analysis · January 1, 2025 We document an increase in market power for politically active firms during times of heightened policy uncertainty, when their information and influence advantage is greater. The effect is longlasting and stronger for large politically active firms. We sho ... Full text Cite

Macroeconomic Information Acquisition Around Earnings Clusters

Journal Article Journal of Accounting Research · January 1, 2025 Research shows that investors acquire and process less firm-specific information on days when many firms announce earnings (hereafter earnings clusters). We show that investors gather more macroeconomic information during earnings clusters, that this behav ... Full text Cite

Investment, inflation, and the role of internal information systems as a transmission channel

Journal Article Journal of Accounting and Economics · November 1, 2023 We examine whether the quality of firms' internal information systems influences the relation between inflation shocks and corporate investment, as posited by imperfect information models. Inconsistent with RBC models’ prediction that nominal variables (e. ... Full text Cite

Information uncertainty and organizational design

Journal Article Journal of Accounting and Economics · August 1, 2022 This paper investigates how information uncertainty, measured through variation in the informativeness of the public information environment, shapes the organizational design choices of firms. I posit that, when faced with higher uncertainty about demand a ... Full text Cite

The role of financial reporting in resolving uncertainty about corporate investment opportunities

Journal Article Journal of Accounting and Economics · November 1, 2019 This discussion of the survey of the literature on financial reporting and corporate investment by Roychowdhury et al. (2019) focuses on an area in this literature that has received less attention—how financial reporting helps managers allocate capital acr ... Full text Cite