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作者：Gong, Guojin; Jiang, Xin Daniel; Xie, Biqin
作者单位：University of Connecticut; University of Waterloo; United States Department of the Treasury; Office of Financial Research
摘要：This study examines whether using cash-flow-based performance metrics (CFM) in CEO compensation contracts affects the design of loan contracts. Cash-flow-based performance evaluation explicitly motivates the CEO to improve the firm's cash flows, which may enhance debt repayment ability and reduce credit risk. We thus hypothesize that lenders, anticipating this incentive effect, offer lower loan spreads and reduce cash-flow-based performance covenants when firms use CFM in CEO compensation cont...
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作者：Choi, Diana
作者单位：Purdue University System; Purdue University
摘要：This study investigates the effects of audit committee financial expertise on the timeliness of banks' loan loss provisions. I employ two regulatory shocks that mandated audit committee expertise-the Federal Deposit Insurance Corporation Improvement Act in 1991 (FDICIA) and a modified listing standard for NYSE and NASDAQ firms in 1999-as quasi-exogenous settings to investigate the effects of audit committee financial expertise on the timeliness of loan loss provisioning. Using a difference-in-...
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作者：Ege, Matthew; Kim, Young Hoon; Wang, Dechun
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; George Mason University
摘要：Public accountants are in high demand by non-accounting firms. While this demand attracts high-quality accountants to public accounting, it can negatively impact audit quality by distracting auditors. We find that the number of metropolitan statistical area-level busy season job postings for public accountants by non-accounting firms is positively associated with misstatements. Results are most pronounced (1) when outside job opportunities are from non-publicly traded companies, which likely p...
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作者：Brown, Jason L.; Sprinkle, Geoffrey B.; Way, Dan
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington; Villanova University
摘要：Firms allocate significant amounts of common costs, and these allocations have implications for performance evaluation and remuneration. Non-insulating cost allocations distribute costs based on same-period relative performance, creating a contemporaneous interdependence between managers that in turn adds uncertainty to the link between effort and performance. In contrast, insulating cost allocations are independent of relative performance during the period and can thus be determined with grea...
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作者：Cikurel, Deni
作者单位：DePaul University
摘要：This study investigates how using technologies that increase the perceived ease of information access, such as search engines, can affect investors' judgments. Relying on the Google effect theory, I predict that using a search engine to access financial information will lead to shallower processing of that information, causing earnings fixation. The results of three experiments support this prediction and the theoretical process. Specifically, investors who access financials via a search engin...
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作者：Gam, Yong Kyu; Liu, Chunbo
作者单位：University College Dublin; Shanghai International Studies University
摘要：This paper investigates how banks utilize soft information to provide contractual flexibility in loan covenant enforcement. We find that relationship lenders are significantly less likely than non-relationship lenders to enforce covenants for material violations when borrowers are potentially in breach of financial covenants. The mitigation of information asymmetry by relationship lending, as opposed to alternative explanations, serves as the underlying mechanism. Furthermore, relationship bor...
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作者：Crowley, Richard M.; Huang, Wenli; Lu, Hai
作者单位：Singapore Management University; Hong Kong Polytechnic University; University of Toronto; Peking University
摘要：The study provides large-scale descriptive evidence on the timing and nature of corporate financial tweeting. Using an unsupervised machine learning approach to analyze 24 million tweets posted by S&P 1500 firms from 2012 to 2020, we find that firms are more likely to tweet financial information around significantly negative or positive news events, such as earnings announcements and the filing of financial statements. This convex U-shaped relation between the likelihood of posting financial t...
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作者：Liu, Nanqin; Zhang, Xiao-Jun
作者单位：University of Macau; University of California System; University of California Berkeley
摘要：This paper examines how relative timing affects the quality of financial reports in a staggered reporting system in which some firms report earlier than others. We show that the audit quality of the leading firm exceeds that of the lagger. Investment efficiency also differs systematically across firms, depending on the relative reporting timing as well as the audit market structure. Audit regulations mitigate the misalignment of interests between auditors and investors but limit the effect of ...
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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...
