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作者：Dunn, Ryan T.; Lundstrom, Nathan G.; Wilkins, Michael S.
作者单位：Auburn University System; Auburn University; University of Kansas
摘要：Recent amendments to Auditing Standard (AS) 3101 require disclosure of the initial year of the auditor-client relationship in the audit report. As the standard was being discussed, auditors, clients, and some PCAOB members expressed reservations about the necessity of tenure disclosures and were particularly concerned about disclosing tenure in the audit report. Our purpose is to investigate whether the tenure disclosures mandated by AS 3101 are associated with changes in stakeholder behavior....
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作者：Hwang, Iny; Jung, Taejin; Lee, Woo-Jong; Yang, Daniel G.
作者单位：Seoul National University (SNU); Audencia; Shenzhen University; University System of Ohio; Ohio State University
摘要：We study manufacturing firms' asymmetric inventory investment in response to sales changes. Focusing on the costs of resource adjustment and stockout that likely differ in sales-increasing and sales-decreasing periods, we predict and find that inventory investment declines less during periods with sales decreases than it rises during periods with sales increases. We validate this claim by showing that managers' expectations of future demand and desire to avoid inventory stockouts are important...
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作者：Chung, Heesun; Choi, Sunhwa; Jung, Woon-Oh
作者单位：Sejong University; Seoul National University (SNU)
摘要：Although prior studies provide evidence on the financial reporting incentives to inflate core earnings through classification shifting (e.g., shifting core expenses to income-decreasing noncore items), few examine the tax-related incentive to report lower core earnings through classification shifting. We examine the effect of controlling shareholders' tax incentives on firms' classification shifting using the introduction of a tax law in Korea that imposes a gift tax on controlling shareholder...
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作者：Chen, Jerry W.; Zhou, Jing
作者单位：University of Auckland; Shanghai University
摘要：We investigate whether Article 11 pro forma financial information assists investors in valuing IPOs. While the SEC expects it to be helpful in assisting investment decisions, Article 11 pro forma financial information is based on registrants' understanding and assumptions, and registrants can exercise their own judgment when preparing pro forma financial statements. It is therefore an empirical question whether the information contained in pro forma financial statements is useful to investors....
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作者：Holzman, Eric R.; Miller, Brian P.; Williams, Brian M.
作者单位：University System of Ohio; Ohio State University; Indiana University System; Indiana University Bloomington
摘要：This study documents a spillover effect of accounting fraud by showing that after the revelation of accounting misconduct, there is an increase in financially motivated neighborhood crime (robberies, thefts, etc.) in the cities where these misconduct firms are located. We find that more visible accounting frauds (e.g., greater media attention and larger stock price declines) are more strongly associated with a future increase in financially motivated neighborhood crime. We also find that the a...
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作者：Fan, Zhongwen; Radhakrishnan, Suresh; Zhang, Yuan
作者单位：University of Hong Kong; University of Texas System; University of Texas Dallas
摘要：We examine the causal effects of corporate governance on earnings management using shareholder-sponsored proposals that pass or fail by a small margin of votes in annual shareholder meetings. This setting provides a causal estimate that overcomes concerns of endogeneity. Specifically, compared with firms whose shareholder proposals fall just short of a majority threshold, firms whose shareholder proposals narrowly pass have similar characteristics but a discretely higher likelihood of implemen...
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作者：Laplante, Stacie Kelley; Lynch, Daniel P.; Vernon, Mary E.
作者单位：University of Wisconsin System; University of Wisconsin Madison; University of Connecticut
摘要：This study examines the association between internal information quality and state tax planning. Prior literature documents a positive association between internal information quality and summary measures of tax avoidance. However, we know little about specific forms of tax planning and internal information quality. State tax planning is difficult because of the number of jurisdictions, variety of tax rules, variation of enforcement, and apportionment requirements. We find that internal inform...
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作者：Allee, Kristian D.; Baik, Bok; Roh, Yongoh
作者单位：University of Arkansas System; University of Arkansas Fayetteville; Seoul National University (SNU); New York University
摘要：This study examines whether a real production activity measure, firm-level electricity consumption growth, is useful in detecting firm financial misreporting. Identifying proxies for a firm's underlying financial performance that are not a function of the firm's accounting system is essential for detection of misreporting. We propose that the difference between revenue growth and electricity consumption growth (i.e., growth wedge (GW)) is a useful signal of financial misreporting. Using electr...
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作者：Jang, Youngki; Yehuda, Nir
作者单位：University of Nebraska System; University of Delaware
摘要：We examine whether resource adjustment costs, such as installation and disposal costs for fixed assets, or hiring and firing costs for employees, impede value creation in mergers and acquisitions (M&A). We focus on M&A deals because they are major corporate investment decisions. As a proxy for adjustment costs, we use a firm-level measure of cost stickiness. We predict that acquirers with high adjustment costs have less flexibility in restructuring resources following the acquisition and will ...
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作者：Ma, Zhiming; Ruan, Lufei; Wang, Danye; Zhang, Haiyan
作者单位：Peking University; California State University System; San Francisco State University; New York University; Tsinghua University
摘要：A recent trend is that firms prefer to hire generalist CEOs with transferable skills (across firms or industries) over hiring specialist CEOs, but the consequences of this trend are unclear. In this study, we examine whether credit rating agencies consider a CEO's general skills as a credit risk factor when assessing an entity's overall creditworthiness. We predict and find that generalist CEOs are associated with lower credit ratings, suggesting that the presence of generalist CEOs is a signi...
