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作者：Ciconte, William A.; Donohoe, Michael P.; Lisowsky, Petro; Mayberry, Michael A.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Boston University; State University System of Florida; University of Florida; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Prior research shows that contingent liabilities do not accurately predict future cash payments due to the managerial discretion afforded by accounting standards. We examine the extent to which current accounting guidance for a material contingent liability-the reserve for unrecognized tax benefits (UTBs) under Financial Interpretation No. 48 (FIN 48)-generates accruals that are predictive of future income tax cash outflows. We document that UTBs fully unwind as cash tax payments over the subs...
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作者：Banker, Rajiv D.; Huang, Rong; Wang, Yuxuan; Yan, Yan
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Fudan University; Sun Yat Sen University; City University of New York (CUNY) System; Queens College NY (CUNY)
摘要：This study investigates the association between managerial ability and cost rigidity. Cost rigidity refers to the relative proportion of fixed and variable costs. We expect that high-ability managers will assess the potential upside congestion and downside default risks and choose an appropriate level of cost rigidity accordingly. Our results show that, on average, high-ability managers tend to adopt a more rigid cost structure because they are more likely to realize favorable demand, and ther...
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作者：Li, Xiaoxi; Rao, Pingui; Yang, Yong George; Yue, Heng
作者单位：Jinan University; Chinese University of Hong Kong; Singapore Management University
摘要：We examine how public enforcement and private enforcement interact to contain self-dealing activities in emerging markets. Using data from China, we find that firms receiving comment letters concerning related party transactions (RPTs) from stock exchanges significantly reduce their RPTs in subsequent years. We further find that (1) the subsequent reduction in RPTs is more pronounced when independent directors have higher career or reputation concerns and (2) independent directors are more lik...
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作者：Commerford, Benjamin P.; Eilifsen, Aasmund; Hatfield, Richard C.; Holmstrom, Kathryn M.; Kinserdal, Finn
作者单位：University of Kentucky; Norwegian School of Economics (NHH); University of Alabama System; University of Alabama Tuscaloosa; Iowa State University
摘要：In this study, we examine auditors' reliance on artificial intelligence (AI) systems that are designed to provide evidence around complex estimates. In an experiment with highly experienced auditors, we find that auditors are more hesitant to rely on evidence from AI-based systems compared to human specialists, consistent with algorithm aversion. Importantly, we also find that a small amount of control (i.e., providing input to specialists) can mitigate this aversion, though this effect depend...
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作者：Jung, Boochun; Kausar, Asad; Kim, Byungki; Park (Chris), You-il; Zhou, Jian
作者单位：University of Hawaii System; University of Hawaii Manoa; American University; University of Queensland
摘要：We examine the economic determinants and informational effects of credit rating affirmations (i.e., the reiteration of past credit ratings) for a sample of US public firms from 1995 to 2020. We find that credit rating affirmations typically follow major corporate events and changes in firm fundamentals that increase information uncertainty about a firm's creditworthiness, suggesting that affirmations reduce uncertainty. We further document that rating affirmations provide value-relevant inform...
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作者：Chang, Xin; Kwok, Wing Chun; Wong, George
作者单位：Nanyang Technological University; Hang Seng University of Hong Kong; Hong Kong Polytechnic University; Hong Kong Polytechnic University
摘要：Building on Banker, Byzalov, and Plehn-Dujowich's (2014, The Accounting Review, 89(3), 839-865) congestion cost theory, we model firms' trade-off between a rigid cost structure and a high inventory level to reduce the congestion costs caused by uncertain demand. We demonstrate that firms with a higher inventory level adopt a less rigid cost structure, but the effect of cost structure on inventory is theoretically ambiguous. Using a large sample of manufacturing firms in the United States, we e...
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作者：Mueller, Raphael; Spengel, Christoph; Weck, Stefan
作者单位：University of Mannheim; Leibniz Association; Zentrum fur Europaische Wirtschaftsforschung (ZEW)
摘要：We examine the costs associated with public disclosure, as opposed to confidential reporting, of tax country-by-country reporting (CbCR) information. Our study addresses a critical knowledge gap, considering the growing adoption of public tax transparency measures. We aim to illuminate this matter by examining the expected costs for firms of making previously confidential CbCR information publicly available. The fact that the information was previously confidentially reported to the tax author...
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作者：Iselin, Michael; Van Buskirk, Andrew
作者单位：University of Minnesota System; University of Minnesota Twin Cities; University System of Ohio; Ohio State University
摘要：We build on recent advances in options pricing research to propose a novel measure of the ex ante relative importance of information events. Our firm-level measure captures the extent to which investors view an event as important, independent of its realized outcome. We first validate the measure and then demonstrate how it can be used to (1) study heterogeneity across firms in the relative importance of information events; (2) identify firms for which an event was important, even though the r...
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作者：Donelson, Dain C.; Kartapanis, Antonis; Yust, Christopher G.
作者单位：University of Iowa; Texas A&M University System; Texas A&M University College Station; University of Iowa
摘要：We explore how securities litigation affects corporate reputation. Experts remain concerned that nonmeritorious securities class actions-those that will be dismissed or settled for nuisance amounts-cause reputational damage. Although several prior studies show reputational costs for nonmeritorious cases, they generally use indirect measures based on returns or total market losses, which are mechanically associated with securities litigation elements. In contrast, we use a relatively direct rep...
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作者：Li, Bing; Liu, Zhenbin; Pittman, Jeffrey; Yang, Shijie
作者单位：City University of Hong Kong; Hong Kong Baptist University; Memorial University Newfoundland; Virginia Polytechnic Institute & State University; Southern University of Science & Technology
摘要：Exploiting mergers between lenders and shareholders of the same firm as an exogenous shock to shareholder-creditor conflicts, we examine the causal effect of these conflicts on firms' ex ante expected stock price crash risk evident in the options implied volatility smirk. The decrease in conflicts of interest between lenders and shareholders induces dual holders to encourage the disclosure of more information to alleviate costly information asymmetry with other investors and better execute the...
