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作者：Darrough, Masako; Huang, Rong; Zhao, Sha
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Fudan University; Oakland University
摘要：We examine whether a stock price spillover effect spreads through the method of listing or country of origin and whether this spillover effect changes when investor sentiment shifts. Using a sample of fraud allegations against Chinese companies that became public through Chinese reverse mergers (CRMs), we investigate whether firms that experienced negative spillover effects on their stock prices are those from the same country and/or with the same method of listing as the firms accused of frau...
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作者：Lennox, Clive; Li, Bing
作者单位：University of Southern California; City University of Hong Kong
摘要：We examine how often audit firms are sued in a large sample of accounting lawsuits that allege financial reporting failures. We find an insignificant relation between the likelihood of auditor litigation and restatements, but the likelihood of auditor litigation is strongly related to the types of alleged accounting deficiencies. We also find that the auditor's type influences the probability of the auditor being sued and the size of the payouts from auditor and nonauditor defendants. In parti...
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作者：Krishnan, Ranjani; Mani, Deepa
作者单位：Michigan State University; Indian School of Business (ISB)
摘要：In strategic outsourcing contracts, a substantial portion of implementation occurs at the client's premises and requires integration of effort between the vendor and the client. Compensation design in such contracts involves trade-offs between the higher (lower) incentive properties of fixed-price (cost-plus) contracts and their higher (lower) ex ante contracting and ex post adaptation costs. Uncertainty influences these trade-offs and affects compensation design. We explore the compensation i...
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作者：Wolfe, Christopher J.; Christensen, Brant E.; Vandervelde, Scott D.
作者单位：Texas A&M University System; Texas A&M University College Station; University of Oklahoma System; University of Oklahoma - Norman; University of South Carolina System; University of South Carolina Columbia
摘要：We examine the use of intuition versus analytical thinking in auditor risk assessment using a task that requires auditors to assess a group of impairment indicators. We expect that auditor intuition, rooted in the subconscious, more likely reacts to impairment indicator risk than does auditor analytical thinking. Results from two different experiments support this expectation for less-experienced audit seniors. These seniors are more likely to assess step-zero impairment indicators as signalin...
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作者：Drymiotes, George; Lin, Haijin; Ertimur, Yonca
作者单位：Texas Christian University; University of Houston System; University of Houston; University of Colorado System; University of Colorado Boulder
摘要：We develop a model to examine implications of empowering shareholders to replace directors. We find that shareholder empowerment functions as a double-edged sword. On the one hand, it can weaken ineffective boards' incentive to hold on to their position. On the other hand, it can induce both effective and ineffective boards to behave strategically to avoid a potential dismissal. As a result, empowerment does not necessarily increase firm value; in some cases, empowerment exacerbates the agency...
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作者：De Simone, Lisa; Nickerson, Jordan; Seidman, Jeri; Stomberg, Bridget
作者单位：Stanford University; Boston College; University of Virginia; Indiana University System; Indiana University Bloomington
摘要：Research on the determinants of tax avoidance have relied on tests using GAAP and cash effective tax rates (ETRs) and total and permanent book-tax differences. Two new proxies have emerged that overcome documented limitations of these proxies: one, developed by Henry and Sansing (2018), allows for more meaningful interpretation of results estimated in samples that include loss observations. The other, reserves for unrecognized tax benefits (UTB), provides new data on tax uncertainty. We offer ...
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作者：Maksymov, Eldar; Pickerd, Jeffrey; Lowe, D. Jordan; Peecher, Mark E.; Reffett, Andrew
作者单位：Arizona State University; Arizona State University-Tempe; University of Mississippi; University of Illinois System; University of Illinois Urbana-Champaign; University System of Ohio; Miami University
摘要：Prior research indicates that most audit legal disputes settle. There is, however, little evidence of the factors that drive the settlement norm and its exceptions in audit legal disputes. To better understand these factors, we rely on theory related to how professionals manage risks and, as a result, how professions defend jurisdictional claims. We use this theoretical lens to help motivate four research questions that we probe by interviewing 27 prominent attorneys experienced in audit litig...
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作者：Dal Maso, Lorenzo; Lobo, Gerald J.; Mazzi, Francesco; Paugam, Luc
作者单位：ESSEC Business School; University of Houston System; University of Houston; University of Florence; Hautes Etudes Commerciales (HEC) Paris
摘要：We examine whether the joint provision of corporate social responsibility (CSR) assurance services and financial audit by the same audit firm influences auditors' assessment of going-concern risk. We predict that the provision of CSR assurance and financial audit by the same audit firm creates CSR-related knowledge spillovers from the CSR assurance team to the financial audit engagement team, which helps in the auditor's assessment of going-concern risk. Using more than 28,000 firm-year observ...
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作者：Gassen, Joachim; Skaife, Hollis A.; Veenman, David
作者单位：Humboldt University of Berlin; University of California System; University of California Davis; University of Amsterdam
摘要：This paper demonstrates that measures of stock price synchronicity based on market model R(2)s are predictably biased downward as a result of stock illiquidity, and that previously employed remedies to correct market model betas for measurement bias do not fix R-2. Using a large international sample of firm-years, we find strong negative and nonlinear relations between illiquidity and R-2 across countries, across firms, and over time. Because variables of interest frequently relate to illiquid...
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作者：Griffith, Emily E.
作者单位：University of Wisconsin System; University of Wisconsin Madison
摘要：Auditors frequently use valuation specialists to help them evaluate fair values, but researchers and regulators know little about how auditors use these specialists. Based on interviews with 28 auditors and 14 valuation specialists, I develop a theoretical framework informed by expert systems and professional competition theories. The interviews suggest that institutional pressures in the fair value environment unevenly impact auditors and specialists, causing tension between auditors' needs f...
