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作者：Fu, Siwen; Wang, Ke; Zhang, Liandong; Zheng, Liu
作者单位：Chinese Academy of Sciences; University of Science & Technology of China, CAS; University of Alberta; Singapore Management University; City University of Hong Kong
摘要：Securities litigation risk is a well-recognized yet underexplored source of financial reporting complexity or unreadability. This study examines the effect of litigation risk on the readability of corporate financial reports. The 1999 Silicon Graphics Inc. (SGI) court ruling unexpectedly reduced litigation risk for firms within the Ninth Circuit Court's jurisdiction. Using a difference-in-differences design centered on the SGI court ruling, we find that, while the readability of financial repo...
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作者：Peddireddy, Venkat; Rajgopal, Shiva
作者单位：China Europe International Business School; Columbia University
摘要：We introduce CRISK, a financial statement-based measure, to assess the systemic risk contribution of a financial firm. CRISK measures the capital shortfall of a financial firm conditional on severe distress in the entire system. Our measure complements the market-based measure, SRISK, introduced by Acharya et al. (2012, American Economic Review, 102(3), 59-64) and Brownlees and Engle (2017, Review of Financial Studies, 30(1), 48-79), in identifying systemically risky financial firms. While SRI...
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作者：Rilke, Rainer Michael; van Pelt, Victor; Lehnen, Sebastian; Guenther, Christina
作者单位：WHU - Otto Beisheim School of Management
摘要：A significant challenge firms face is providing performance feedback that effectively motivates low-performing employees. In our field experiment, we examine the impact of an often-overlooked form of relative performance feedback (RPF) that emphasizes comparing employees based on their inputs. Our results indicate that input-based RPF enhances the input performance of low performers without adversely affecting high performers. Furthermore, our field experiment demonstrates that selecting the r...
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作者：Constance, Patience; Lennox, Clive; Li, Chan
作者单位：State University System of Florida; University of West Florida; University of Southern California; University of Kansas
摘要：This study examines whether PCAOB inspection reports are useful for signaling the risk of misstatements in future periods and the extent to which different types of audit deficiencies predict future misstatements. We find that, after the inspection report is issued, PCAOB-identified audit deficiencies are positively associated with future misstatements for the audit firm's entire client portfolio. When we examine different types of deficiencies, we find that an auditor's failure to understand ...
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作者：Ferguson, Duke; Krupa, Trent J.; Laux, Rick C.
作者单位：University of Kentucky; University of Arkansas System; University of Arkansas Fayetteville; Oklahoma State University System; Oklahoma State University - Stillwater
摘要：We examine how progressive individual tax rates affect risk-taking by pass-through businesses (PTBs). PTBs generate over 60% of US business income and make up roughly 95% of business tax returns, yet there is limited research on how progressive tax rates affect project selection. We study PTBs using the setting of thoroughbred racing and examine how progressive tax rates affect the decision to enter a risky stakes race or a less risky allowance race. This setting provides a unique opportunity ...
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作者：Blum, Emily S.; Hatfield, Richard C.
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; University of Alabama System; University of Alabama Tuscaloosa
摘要：Professional skepticism is an essential element of a healthy audit. In this study, we present a framework in which the two elements of professional skepticism-skeptical judgment and skeptical action-differ in that skeptical judgment involves paying attention to audit risks, whereas skeptical action often involves overcoming personal risks. This distinction suggests that the optimal conditions for skeptical judgment may differ from the optimal conditions for converting that judgment to skeptica...
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作者：Cheng, Qiang; Wang, Brian Yutao; Yang, Holly; Zhang, Zheyuan
作者单位：Singapore Management University; Renmin University of China; Capital University of Economics & Business
摘要：While prior studies have examined whether financial analysts affect corporate innovation, there is little research on the mechanism through which this occurs. In this paper, we examine whether and how analysts' questions about innovation during site visits affect corporate innovation. Using a sample of corporate site visits in China, we find that when analysts ask questions about innovation during site visits, firms invest more in R&D in the future. Consistent with knowledge diffusion across f...
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作者：Seidman, Jeri K.; Sinha, Roshan K.; Stomberg, Bridget
作者单位：University of Virginia; Indiana University System; IU Kelley School of Business; Indiana University Bloomington
摘要：We interview public company tax executives to provide new evidence on how corporate taxpayers experience and navigate the income tax audit process. Interviewees describe being targeted by tax police and having to defend their positions. Thus, we adopt a structural metaphor of tax audits as police investigations and use a framework from the policing literature to explain what influences taxpayers' perceptions of fairness during audits. Perceptions of fairness are important as targets of investi...
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作者：Steccolini, Ileana; Barbera, Carmela
作者单位：University of Essex; University of Bologna; University of Bergamo
摘要：This article examines the role of accounting in the recursive processes of continuous adjustment to programs that emerge when programs are imposed by central government on local government. Focusing on the Italian context and adopting the conceptual lens of governmentality, our study contributes to the extant literature by highlighting the role of accounting in the power dynamics and transactional realities at the intersection between the governors and the governed. In doing so, it considers h...
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作者：Jia, Xue; Suijs, Jeroen
作者单位：University of Melbourne; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC
摘要：Firms with multiple pieces of information can disclose the information concurrently (bundled disclosure) or sequentially (unbundled disclosure). This paper examines the pricing implications of (un)bundled disclosure in a rational expectations equilibrium model. The model considers a firm whose liquidating cash flow consists of two components. Some investors possess private information about one component (e.g., earnings) and all investors are uninformed about the other component (e.g., unexpec...
