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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：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：Li, Bin; Siciliano, Gianfranco; Venkatachalam, Mohan
作者单位：University of Houston System; University of Houston; China Europe International Business School; Duke University
摘要：This study adopts a two-step approach to highlight the disclosure quality channel that drives economic consequences of IFRS adoption. This approach helps address the identification challenge noted by prior research and offers direct evidence on the role of disclosure quality. In the first step, we document the impact of the IFRS mandate on changes in disclosure quality proxied by the granularity of line item disclosure in financial statements. We find that IFRS-adopting firms provide more disa...
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作者：De Waegenaere, Anja; Sansing, Richard; Wielhouwer, Jacco L.
作者单位：Tilburg University; Dartmouth College; Vrije Universiteit Amsterdam
摘要：The fact that incumbent firms can immediately deduct research and development (R&D) investments from taxable income is generally believed to give them a strategic advantage over new firms that cannot deduct the investment cost, but instead generate a net operating tax loss carryover. Using an analytical model, we show that this conventional wisdom need not hold in a competitive environment. We examine operating and investment decisions in a duopolistic industry in which an initial investment i...
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作者：Amin, Keval; Eshleman, John Daniel; Guo, Peng
作者单位：State University of New York (SUNY) System; Stony Brook University; Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden
摘要：High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. We extend this line of work by documenting that the likelihood of misstatements is higher when sentiment is high. Although this would suggest elevated audit risk, we posit that a contemporaneous reduction in auditors' litigation cost could drive down audit fees and going concern opinion (GCO) reporting conservatism in order to please clientele. Consistent with t...
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作者：Gong, Guojin; Qu, Hong; Tarrant, Ian
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University System of Georgia; Kennesaw State University; State University of New York (SUNY) System; University at Buffalo, SUNY
摘要：When information asymmetry is a major market friction, earnings forecasts can lead to higher price efficiency even after the information in forecasts completely dissipates upon earnings realizations. We show this in an experimental market that features information asymmetry (i.e., some traders possess differential private information). Earnings forecasts reduce information asymmetry and lead to prices that reflect a greater amount of private information. Traders can learn more about others' in...
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作者：Heo, Jin Suk; Kwon, Soo Young; Tan, Hun-Tong
作者单位：Hongik University; Korea University; Korea University; Nanyang Technological University
摘要：Using detailed data for fieldwork hours and audit hours by rank from audit engagements in Korea, we examine whether audits conducted under workload imbalance, proxied by busy-season audits, impair audit quality, and how auditors adjust staff assignments for busy-season audits. We generally find that busy-season audits are associated with lower audit quality, and that audit firms reduce the involvement of senior auditors during busy-season audits. In addition, the greater the involvement of sen...
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作者：Riedl, Edward J.; Sun, Estelle Y.; Wang, Guannan
作者单位：Boston University; Suffolk University
摘要：This study investigates the mispricing of market-wide investor sentiment by exploring the relation between sentiment and investor expectations of future earnings. Prior research argues that sentiment-driven mispricing should be most pronounced for hard-to-value firms, such as those reporting losses (Baker and Wurgler 2006). Using investor expectations of future earnings, we provide empirical results consistent with this behavioral finance theory. We predict and find that investors perceive los...
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作者：Campbell, John L.; Twedt, Brady J.; Whipple, Benjamin C.
作者单位：University System of Georgia; University of Georgia; University of Oregon
摘要：Regulation Fair Disclosure (Reg FD) Form 8-K filings provide a venue where managers release information to the market as a whole that they designate as being material. Using this setting, we study trading patterns immediately prior to the public disclosure of material information. We offer three main results. First, using both intraday and daily trading data, we find abnormal trading volume of 21 percent (13 percent) in the hour (day) prior to the public disclosure, respectively. Second, we fi...
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作者：Hodge, Frank D.; Mendoza, Kim I.; Sinha, Roshan K.
作者单位：University of Washington; University of Washington Seattle; University of Illinois System; University of Illinois Urbana-Champaign; Indiana University System; Indiana University Bloomington
摘要：We examine the effect of humanizing (naming) robo-advisors on investor judgments, which has taken on increased importance as robo-advisors have become increasingly common and there is currently little SEC regulation governing key aspects of their use. In our first experiment, we predict and find that investors are more likely to rely on the investment recommendation of an unnamed robo-advisor, whereas they are more likely to rely on the investment recommendation of a named human advisor. Theor...
