-
作者：Bruehne, Alissa I.; Schanz, Deborah
作者单位：University of Munich
摘要：We examine the black box of corporate tax risk management by providing unique insights into practitioners' tax risk perceptions, tax risk management practices, and influences leading to variation in tax risk management practices across firms. Opening this black box is important as tax risk has become an increasingly relevant aspect in corporate tax practice-little is yet known about how firms define and manage tax-related risks. We perform our analysis based on 33 expert interviews, which we c...
-
作者：Canace, Thomas G.; Jackson, Scott B.; Ma, Tao; Zimbelman, Aaron
作者单位：Wake Forest University; University of South Carolina System; University of South Carolina Columbia; Texas Tech University System; Texas Tech University
摘要：Accounting rules require that certain R&D expenditures be capitalized, but academic research often states that all R&D expenditures must be immediately expensed. An accurate understanding of actual R&D accounting practices is critical because that understanding influences research questions and design choices. To examine the competing R&D accounting perspectives, we survey 184 experienced financial officers. Our survey reveals that R&D capitalization is common and extensive in practice. Over 9...
-
作者：Chen, Huimin (Amy); Shohfi, Thomas D.
作者单位：University of Massachusetts System; University of Massachusetts Lowell; Rensselaer Polytechnic Institute
摘要：We investigate variation in information production by sell-side analysts and its potential role in hedge fund activist intervention, an important external corporate governance mechanism that creates shareholder value. Using textual analysis to derive an activism dictionary from intervention objectives and tactics, we find substantially more activism content in pre-intervention analyst reports of target firms than propensity score matched control firms. Activism content is associated with more ...
-
作者：Infuehr, Jakob
作者单位：University of Southern Denmark
摘要：Conventional agency theory suggests that firms should benchmark CEO compensation to absorb systemic risk and to more efficiently incentivize executives to work hard. Yet empirical research has found only a modest use of benchmarking in CEO compensation contracts. In this paper, I highlight one weakness of relative performance evaluation (RPE). When earnings management is possible, benchmarking creates stronger incentives for misreporting performance measures compared to benchmark-independent p...
-
作者：Boulton, Thomas J.; Braga-Alves, Marcus, V; Chakrabarty, Bidisha
作者单位：University System of Ohio; Miami University; Pace University; Saint Louis University
摘要：Trading volume is increasingly shifting to dark venues, and the causes of this move are not well understood. We examine whether a firm's reporting opacity affects its dark pool trading and provide robust evidence that (partly) explains this volume migration. Exploiting the exogenous variation in home-country reporting opacity in a sample of American Depositary Receipts (ADRs) and using multiple metrics for reporting opacity, we find that greater opacity associates with increased dark pool trad...
-
作者：Baugh, Matthew; Hallman, Nicholas J.; Kachelmeier, Steven J.
作者单位：Arizona State University; Arizona State University-Tempe; University of Texas System; University of Texas Austin
摘要：Literature to date reveals relatively little about the role of expertise in auditor selection beyond basic preferences for Big 4 and industry specialist auditors. We hypothesize that audit committees whose members have no Big 4 auditing experience are likely to struggle when interviewing prospective Big 4 partners, leading such committees to draw on superficial, heuristic cues in lieu of conducting more substantive evaluations. To test this prediction, we obtain independent ratings of the faci...
-
作者：Guan, Yuyan; Wang, Zheng; Wong, M. H. Franco; Xin, Xiangang
作者单位：Nanyang Technological University; City University of Hong Kong; University of Toronto
摘要：Speakers of weak future-time reference (FTR) languages perceive the future as closer and more imminent. In this study, we examine the important question of whether the FTR properties of languages spoken by investors affect their demand for forward-looking information, thereby influencing corporate management forecast practices in different countries. We predict that investors who speak weak-FTR languages are more concerned about the future prospects of their investments and the ability of comp...
-
作者：Godsell, David
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Sovereign wealth funds (SWFs) are government-owned institutional investors pursuing political and financial investment objectives. With $8 trillion in assets, SWFs are geopolitical powerbrokers actively participating in global capital markets, yet we know little about the financial reporting consequences of SWF investment. I document evidence supporting the hypothesis that the simultaneous pursuit of political and financial investment objectives renders SWFs weak monitors. Using a staggered di...
-
作者：Myers, Linda A.; Schmardebeck, Roy; Seidel, Timothy A.; Stuart, Michael D.
作者单位：University of Tennessee System; University of Tennessee Knoxville; Brigham Young University; Oklahoma State University System; Oklahoma State University - Stillwater
摘要：Although the FASB and IASB conceptual frameworks identify relevance and faithful representation as the fundamental qualitative characteristics of useful information, prior research suggests that revenue recognition accounting standards that restrict managerial discretion resulted in improved faithful representation but reduced relevance. We use the adoption of Accounting Standards Update (ASU) 2009-13 and ASU 2009-14 to examine the effects of increased managerial discretion to accelerate reven...
-
作者：Hanlon, Michelle; Yeung, Kelvin; Zuo, Luo
作者单位：Massachusetts Institute of Technology (MIT); City University of Hong Kong; Cornell University
摘要：This paper develops a unified framework to synthesize the growing stream of positive research on the role of individual decision makers in shaping observed accounting phenomena. This line of research recognizes two central ideas in behavioral economics. First, individual behavior depends not only on economic incentives and accessible information but also on individual preferences, abilities, experiences, and other characteristics. Second, the constraints that structure human interactions encom...
