-
作者：Koonce, Lisa; Toynbee, Sara; White, Brian J.
作者单位：University of Texas System; University of Texas Austin; Cornell University
摘要：Academic and anecdotal evidence suggests that acquirers prefer to record higher goodwill values in business combinations so they can benefit from higher post-acquisition earnings when goodwill is only tested for impairment. We conduct multiple experiments to test the hypothesis that this perspective ignores two costs that acquirers may also consider. Specifically, goodwill generally carries negative market perceptions and is associated with a risk of costly future impairment losses. Our result...
-
作者：Gutierrez, Elizabeth; Minutti-Meza, Miguel; Tatum, Kay W.; Vulcheva, Maria
作者单位：Universidad de Chile; University of Miami; State University System of Florida; Florida International University
摘要：The United Kingdom mandated expanded audit reports in two waves, starting in 2013 and 2017, respectively. Prior studies of the first wave, which included large and highly regulated companies, concluded that expanded reports have limited incremental value. We focus on the second wave, which included companies listed on the Alternative Investment Market (AIM). The AIM is characterized by emerging companies that are smaller, riskier, and subject to lighter regulatory requirements and to private m...
-
作者：Schaefer, Ulrich; Pelger, Christoph
作者单位：University of Vienna; University of Passau; Norwegian School of Economics (NHH)
摘要：Deferred compensation is often proposed as an instrument to prevent managerial myopia. However, empirical studies show that its practical use is limited when it comes to managerial retirement. We study the optimal design of accounting-based deferred compensation for retiring managers. While deferred compensation is useful in establishing long-term incentives, it causes contracting frictions in subsequent periods. Deferred bonuses of retiring managers imply inefficiently weak incentives for inc...
-
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...
-
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 ...
-
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 ...
-
作者：Krishnan, Jagan; Li, Meng; Park, Hyun Jong
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; University of Texas System; University of Texas Arlington
摘要：We examine whether auditor political connections are associated with the SEC's oversight of audit clients. Specifically, we test whether auditors' political action committee contributions are associated with three SEC oversight actions: comment letters, investigations, and Accounting and Auditing Enforcement Releases (AAERs). Consistent with higher political connections inducing heightened scrutiny from the SEC, we find that the clients of auditors with higher political connections are more li...
-
作者：Jefferson, Devon P.; Andiola, Lindsay M.; Hurley, Patrick J.
作者单位：Wake Forest University; Virginia Commonwealth University; Northeastern University
摘要：Fatigue and burnout are root causes of audit quality issues and turnover. Leveraging the job demands-resources theory, we investigate whether two mechanisms can reduce accountants' fatigue and, in turn, improve audit quality. We conduct a field study of public accountants during both normal and busy season work periods, collecting bi-daily logs to examine whether the use of microbreaks (i.e., brief respite activities) as a job crafting mechanism and/or the receipt of supervisory support as a j...
-
作者：Christensen, Derek; Lynch, Daniel P.; Partridge, Clay
作者单位：University of Oregon; University of Wisconsin System; University of Wisconsin Madison; University System of Ohio; Ohio State University
摘要：Prior literature on the relationship between financial reporting and investment efficiency generally overlooks the connection between firms' financial and managerial reporting systems. As a result, it is difficult to determine whether increases in the quality of firms' internal information environments (IIQ) and/or the quality of their external information environments (EIQ) explain improvements in investment efficiency following financial reporting changes. Leveraging the transition window to...
-
作者：Narayanamoorthy, Ganapathi S.; Wheeler, P. Barrett
作者单位：Tulane University
摘要：Discretionary income smoothing has been argued to increase bank opacity and degrade financial system stability by making banks more difficult to monitor. However, no direct empirical association between discretionary smoothing and opacity has been established to date. We argue that smoothing could reflect either the opportunistic exercise of discretion that disconnects loan loss provisions (LLPs) from changes in underlying credit quality, consistent with smoothing increasing opacity, or an inf...
