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作者：Nan, Lin; Wen, Xiaoyan
作者单位：Purdue University System; Purdue University; Texas Christian University
摘要：We examine information quality and financial leverage when an entrepreneur needs financing to undertake a risky project and his effort input affects the project's outcome. We show that information quality and financial leverage interact to play active roles in both investment and effort decisions. Our analysis shows a positive association between leverage and optimal information quality-when leverage is low (high), low (high) information quality is optimal. This is because with low leverage, t...
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作者：Imdieke, Andrew J.; Li, Chan; Zhou, Shan
作者单位：University of Notre Dame; University of Kansas; University of Sydney
摘要：This study examines whether auditors' evaluation and reporting of firms' internal control over financial reporting (ICFR) affects firm operational efficiency. Prior research indicates that the strength of internal controls is positively associated with economic benefits. However, notwithstanding the underlying strength of controls, whether the mere presence of an ICFR audit provides similar economic benefits is unclear. We predict and find that small firms with ICFR audits have significantly h...
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作者：Jing, Jiao; Myers, Linda A.; Ng, Jeffrey; Su, Lixin (Nancy)
作者单位：University of Jinan; University of Tennessee System; University of Tennessee Knoxville; University of Hong Kong; Hong Kong Polytechnic University
摘要：Customer referencing is a strategy that firms can use to disclose their connections with reputable customers as a means of enhancing their own reputations. We study the capital market benefits of naming reputable nonmajor customers in firms' financial reports to provide empirical evidence on whether this form of customer referencing has important practical implications. We predict and find that firms enjoy a lower cost of equity when they engage in customer referencing in their financial repor...
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作者：Khurana, Inder K.; Zhong, Rong (Irene)
作者单位：University of Missouri System; University of Missouri Columbia; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：The rise of stakeholder governance has triggered a wave of legal initiatives to strengthen the employee voice in firms. However, how managers trade off the competing objectives between shareholders and employees when making financial reporting decisions is not well understood. Exploiting staggered employment protection laws (EPLs) across 26 countries, we find that managers facing strong EPLs report more opaque earnings. Exploring the mechanism, we show that EPLs induce manager-employee allianc...
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作者：Hoang, Hien; Phang, Soon-Yeow
作者单位：Monash University
摘要：We examine whether the benefits and consequences of building trust through corporate social responsibility (CSR) vary when the company engages in material or immaterial CSR, and the conditions under which these benefits hold. Our study informs companies about the relative benefits and consequences of engaging in particular types of CSR activities. Prior archival research finds that CSR performance can buffer companies against negative stock reactions caused by subsequent adverse events, such a...
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作者：Ali, Ashiq; Amiram, Dan; Kalay, Alon; Sadka, Gil
作者单位：University of Texas System; University of Texas Dallas; Tel Aviv University; Michigan State University
摘要：This study examines whether analysts have an industry-level information advantage over managers when forecasting earnings. While analysts are often viewed as industry experts, prior research fails to document such an advantage. We predict that analysts' industry-level information advantage is more likely to exist in industries where firm performance is more sensitive to industry-level external economic forces. We find that for such firms, analysts provide relatively more accurate earnings fore...
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作者：Bochkay, Khrystyna; Brown, Stephen V.; Leone, Andrew J.; Tucker, Jennifer Wu
作者单位：Northwestern University; University of Connecticut; State University System of Florida; University of Florida; University of Miami
摘要：Natural language is a key form of business communication. Textual analysis is the application of natural language processing (NLP) to textual data for automated information extraction or measurement. We survey publications in top accounting journals and describe the trend and current state of textual analysis in accounting. We organize available NLP methods in a unified framework. Accounting researchers have often used textual analysis to measure disclosure sentiment, readability, and disclosu...
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作者：Austin, Ashley A.
作者单位：University of Richmond
摘要：During the testing stages of the audit, auditors must divide their attention simultaneously between (i) performing the planned audit procedures and (ii) remaining broadly skeptical and alert for fraud. Regulators note instances in which auditors do not take actions that effectively respond to fraud risks during these later stages, suggesting auditors may devote insufficient attention to fraud while they are busy executing the planned audit procedures. Leveraging prospective memory theory, I id...
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作者：Chen, Jeff Zeyun; Kim, Yongtae; Yang, Leo L.; Zhang, Joseph H.
作者单位：Texas Christian University; Santa Clara University; Korea Advanced Institute of Science & Technology (KAIST); University of Memphis
摘要：This study examines the role of information transparency in facilitating peer firms' investment in follow-on innovation. We capture information transparency with both textual and numerical information disclosed in 10-Ks. Using patent citations to proxy for investment in follow-on innovation, we predict and find a positive association between transparency at the knowledge source and follow-on innovation. We further show that the effect of information transparency varies with the degree of uncer...
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作者：Li, Congcong; Lin, An-Ping; Lu, Hai
作者单位：Duquesne University; Singapore Management University; University of Toronto; Peking University
摘要：Social skills are important but difficult to measure. So far, few empirical studies have examined the effect of social skills on the performance of professionals. Using the number of LinkedIn connections as a proxy for social skills, we investigate the effect of financial analysts' social skills on their performance. We use multiple ways to validate the measure of social skills and show that analysts with better social skills produce more accurate earnings forecasts and that their stock recomm...
