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作者：Chan, Kam C.; Jiang, Xuanyu; Wu, Donghui; Xu, Nianhang; Zeng, Hong
作者单位：Zhongnan University of Economics & Law; Western Kentucky University; Central University of Finance & Economics; Chinese University of Hong Kong; Renmin University of China; Chongqing University
摘要：China's split-share reform of 2005 (the Reform) converts the previously restricted shares held by founding shareholders to shares tradable on the open market. Against this backdrop, we study how underwriter-affiliated analysts and firms' large shareholders interact in the event of the latter's sales of restricted shares. We document that recommendations made by affiliated analysts are significantly more optimistic when firms' large shareholders plan to sell their restricted shares. This optimi...
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作者：Menon, Rahul
作者单位：Purdue University System; Purdue University
摘要：What incentives drive managers to disclose immediately when they have an option to delay disclosures? I examine this question in a two-period setting in which public news that is positively correlated with firm value arrives periodically. I show that, when the manager's likelihood of receiving information is independent of the public news, an informed manager is more likely to disclose immediately when the public news is good. This happens even as the disclosure threshold itself increases in t...
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作者：Demerjian, Peter; Donovan, John; Lewis-Western, Melissa F.
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Notre Dame; Brigham Young University
摘要：We investigate whether income smoothing affects the usefulness of earnings for contracting through the monitoring role of earnings-based debt covenants. First, we examine initial contract design and predict that income smoothing will increase (decrease) the use of earnings-based covenants if income smoothing improves (reduces) the usefulness of earnings to monitor borrowers. We find that private debt contracts to borrowers with greater income smoothing are more likely to include earnings-based...
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作者：Hobson, Jessen L.; Stern, Matthew T.; Zimbelman, Aaron F.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; DePaul University; University of South Carolina System; University of South Carolina Columbia
摘要：Regulators and researchers have expressed concerns that social interaction leads auditors to unjustifiably trust managers, constituting a lack of sufficient professional skepticism. Using both an abstract laboratory experiment and a contextually rich experiment with practicing auditors we predict and find that higher Dark Triad auditors (those with higher levels of the shared core between psychopathy, narcissism, and Machiavellianism) are relatively more resistant to lapses in professional ske...
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作者：Ge, Weili; Matsumoto, Dawn; Wang, Emily Jing; Zhang, Jenny Li
作者单位：University of Washington; University of Washington Seattle; Hong Kong University of Science & Technology; University of British Columbia
摘要：We examine the stock market consequences of disclosing accounting irregularities for U.S.-listed foreign firms. After controlling for the severity of the irregularity and other firm characteristics, we find that foreign firms experience significantly more negative short-window stock market reactions following irregularity announcements than do U.S. firms. Moreover, for a subsample of 64 irregularities of foreign firms that are listed on both a U.S. and home country stock exchange, we find evid...
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作者：Hope, Ole-Kristian; Yue, Heng; Zhong, Qinlin
作者单位：University of Toronto; BI Norwegian Business School; Singapore Management University; Renmin University of China
摘要：We examine the impact of China's anti-corruption campaign on firm-level financial reporting quality (FRQ). As an important component of the anti-corruption campaign, in October 2013, Rule 18 was issued to prohibit party and government officials from serving as directors for publicly listed firms. The regulation led to a large number of official directors resigning from their roles as directors involuntarily. As such, Rule 18 has effectively weakened, if not fully discontinued, the political co...
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作者：Fedyk, Tatiana; Singer, Zvi; Sougiannis, Theodore
作者单位：University of San Francisco; Universite de Montreal; HEC Montreal; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：We combine a fundamental property of accruals and a behavioral phenomenon to provide an explanation for the accrual anomaly. The fundamental property is accruals that originate must subsequently reverse. The behavioral phenomenon is individuals tend to underestimate the variance of noisy signals in various domains of decision making. We argue that originating accruals represents a noisier signal than reversing accruals because the uncertainty of whether originating accruals will eventually con...
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作者：Cohen, Daniel; Pandit, Shailendra; Wasley, Charles E.; Zach, Tzachi
作者单位：Texas A&M University System; Texas A&M University College Station; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Rochester; University System of Ohio; Ohio State University
摘要：To test hypotheses about earnings management, many studies investigate managers' manipulation of real activities (real earnings management, REM). Tests using measures of abnormal REM hinge critically on the measurement of normal real activities. Yet, there is no systematic evidence on the statistical properties of commonly used REM measures. We provide such evidence by documenting the Type I error rates and power of the test of the REM measures commonly used in the literature. We find these me...
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作者：Palmon, Dan; Sarath, Bharat; Xin, Hua C.
作者单位：Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick; University of Louisville
摘要：We select a small set of recommendations that lie in the upper and lower tail of the empirical distribution of divergences between a recommendation, and the consensus over the window (-30, -1) days prior to that recommendation. We classify these extremely divergent recommendations as bold, and then subdivide them into informative bold recommendations that lead other analysts (leading-bold) and those that are ignored by other analysts (contra-bold) based on the consensus change in the 30 days a...
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作者：Cunningham, Lauren M.; Johnson, Bret A.; Johnson, E. Scott; Lisic, Ling Lei
作者单位：University of Tennessee System; University of Tennessee Knoxville; George Mason University; Virginia Polytechnic Institute & State University
摘要：The SEC has long asserted that earnings management practices result in adverse consequences for investors. We examine whether SEC oversight affects firms' accounting quality in terms of earnings management trade-offs. We expect that increased firm-specific regulatory scrutiny, in the form of an SEC comment letter, will induce management to switch from accrual-based earnings management (AEM), which is a main focus of the SEC, to real-activities-based earnings management (REM), which is not like...
