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作者：Downey, Denise Hanes; Westermann, Kimberly D.
作者单位：Villanova University; California State University System; California Polytechnic State University San Luis Obispo
摘要：Regulators are concerned about the quality of group audits because of poor inspection results, recent enforcement actions against component auditors, and the significance of these audits to the global economy. Yet research in this area is nascent. In response, we survey and interview US-based global group audit leads to better understand the group audit process and their perceptions of challenges that arise on such engagements. Our findings indicate that group auditors organize their audits co...
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作者：Choudhary, Preeti; Merkley, Kenneth; Schipper, Katherine
作者单位：University of Arizona; Indiana University System; Indiana University Bloomington; Duke University
摘要：We provide large-sample archival evidence on the nature and consequences of errors deemed immaterial to the previously issued financial statements containing the errors (immaterial errors). The incidence of immaterial error corrections has been increasing since about 2004, and these corrections are associated with modestly and discernibly negative share returns that are more negative for income-decreasing corrections and corrections that involve multiple issues. We find that immaterial errors ...
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作者：Ewert, Ralf; Wagenhofer, Alfred
作者单位：University of Graz
摘要：Although internal control over financial reporting has gained increasing regulatory attention, its enforcement is far from perfect; thus, firm-specific incentives to management become important to increase the quality of financial reports. We study how owners can motivate managers to invest in accounting quality even though it is costly to the managers. Using an agency model, we establish that a sufficiently conservative accounting system (which understates performance) is necessary to induce ...
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作者：Cheng, C. S. Agnes; Guo, Peng; Weng, Chia-Hsiang; Wu, Qiang
作者单位：Hong Kong Polytechnic University; Rutgers University System; Rutgers University New Brunswick; National Chengchi University; Rensselaer Polytechnic Institute
摘要：Using a large US sample, we find a significant and positive relation between patents and corporate tax planning, and the effect is incremental to the effect of R&D on tax planning. We employ a quasi-natural experiment based on staggered industry-level innovation shocks to identify the positive causal effect of patents on corporate tax planning. We also find that patents are not associated with tax planning for domestic firms, but their association with tax planning is concentrated in multinati...
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作者：Kuang, Yu Flora; Lee, Gladys; Qin, Bo
作者单位：University of Melbourne
摘要：We investigate whether audit fees and auditors' opinions on internal controls are associated with whistleblowing allegations externally filed to regulatory agencies. We find that firms subject to whistleblowing allegations have significantly higher audit fees, regardless of the substance of these allegations, whereas an auditor is more likely to issue an adverse opinion on internal controls when the allegation is substantiated, rather than frivolous. Further, our findings suggest that auditors...
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作者：Lewellen, Christina M.; Mauler, Landon; Watson, Luke
作者单位：North Carolina State University; State University System of Florida; Florida State University; Villanova University
摘要：Incorporating the firm's corporate parent in a tax haven is a major decision that receives significant attention from many stakeholders, yet certain implications of this corporate strategy remain unclear. While tax haven incorporation offers tax savings, it also imposes risks that are potentially costly and hence important to consider. We predict and find a higher cost of equity capital in firms with parent companies that are incorporated in tax havens but that are primarily based in nonhaven ...
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作者：Beardsley, Erik L.; Mayberry, Michael A.; McGuire, Sean T.
作者单位：University of Notre Dame; State University System of Florida; University of Florida; Texas A&M University System; Texas A&M University College Station
摘要：This study investigates how sophisticated market participants use tax-based information by examining whether analysts' street effective tax rates (ETRs) are informative. When assessing firm performance, analysts exclude items they believe do not reflect current performance, resulting in street metrics such as street ETR. However, evidence on the properties of the components of street earnings is limited. Examining the informativeness of street ETRs is important because taxes are a significant ...
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作者：Gimbar, Christine; Mercer, Molly
作者单位：DePaul University
摘要：To effectively manage audit risk, auditors must correctly predict the potential litigation and reputation consequences associated with inaccurate accounting estimates. Accurate predictions are critical because underestimation of negative consequences leads to excess legal exposure and overestimation leads to overauditing. Our paper examines whether auditors correctly anticipate these litigation and reputation outcomes. We provide manager- and partner-level auditors with case facts from an audi...
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作者：Ramalingegowda, Santhosh; Utke, Steven; Yu, Yong
作者单位：University System of Georgia; University of Georgia; University of Connecticut; University of Texas System; University of Texas Austin
摘要：This study examines the relation between earnings management and block ownership of same-industry peer firms by a common set of institutional investors (common institutional ownership). This relation is important given the tremendous growth of common institutional ownership and the significant influence of blockholders on financial reporting. We hypothesize that common institutional ownership mitigates earnings management by enhancing institutions' monitoring efficiency and by encouraging inst...
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作者：Chahed, Yasmine
作者单位：University of Manchester; Alliance Manchester Business School; University of London; London School Economics & Political Science
摘要：How is it possible that British policymakers resisted market-based measurement for decades while financial economic concepts of decision making and valuation still gained widespread acceptance as a justification for accounting standard setting? This study introduces the concept of technologies of financialization to develop the theorizing of the rise of finance in the domain of accounting. Based on a genealogical history of narrative reporting in the United Kingdom, it demonstrates how referen...
