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作者：Khan, Urooj
作者单位：Columbia University
摘要：I investigate whether fair value accounting can contribute to the banking industry's systemic risk. I focus on the adoption of Statement of Financial Accounting Standard No. 115 (SFAS No. 115), which required available-for-sale (AFS) securities to be recognized at fair value with unrealized gains and losses included in equity through accumulated other comprehensive income. SFAS No. 115 increased banks' regulatory risk because, at the time, calculation of regulatory capital closely conformed wi...
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作者：Ayers, Benjamin C.; Seidman, Jeri K.; Towery, Erin M.
作者单位：University System of Georgia; University of Georgia; University of Virginia
摘要：This study uses a confidential data set of firms assigned to the Internal Revenue Service's Coordinated Industry Case (CIC) program to examine the effect of audit certainty on firms' tax reporting behavior. We first model the determinants of assignment to the program. Although the ability and incentive to avoid taxes are related to CIC assignment, we find that the IRS assigns firms primarily based on size and complexity. We then test whether audit certainty has a detectable effect on tax payme...
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作者：Hannan, R. Lynn; McPhee, Gregory P.; Newman, Andrew H.; Tafkov, Ivo D.; Kachelmeier, Steven J.
作者单位：Tulane University; Clemson University; University of South Carolina System; University of South Carolina Columbia; University System of Georgia; Georgia State University; University of Texas System; University of Texas Austin
摘要：Prior research documents that providing relative performance information (RPI) motivates employees to increase effort; however, a potential downside of RPI is that it also motivates employees to distort their effort allocations between tasks such that it can be detrimental to overall firm performance. This study investigates via an experiment how the informativeness of RPI affects employees' effort allocations and performance in a multitask environment. We investigate the informativeness of tw...
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作者：Kim, Jaewoo; McGuire, Sean T.; Savoy, Steven; Wilson, Ryan
作者单位：University of Rochester; 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 Oregon
摘要：The trade-off literature asserts that managers weigh the direct benefits of tax avoidance against the associated nontax costs. This literature implies each firm has a unique optimal level of tax avoidance that balances these costs and benefits. Our study is the first to document how quickly the average firm moves toward its optimal level of tax avoidance. We find that the typical firm converges toward its optimum at a rate that ranges from approximately 69 to 84 percent over a three-year perio...
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作者：Beardsley, Erik L.; Lassila, Dennis R.; Omer, Thomas C.
作者单位：University of Notre Dame; Texas A&M University System; Texas A&M University College Station; Mays Business School; University of Nebraska System; University of Nebraska Lincoln
摘要：We investigate whether audit offices respond to audit fee pressure by increasing their focus on nonaudit services (NAS), as well as the combined effect of audit fee pressure and an increased focus on NAS on audit quality. We find a positive association between audit fee pressure and changes in NAS at the audit office level. We also find increased rates of client misstatement among audit offices that increase focus on NAS in the presence of audit fee pressure compared to audit offices that do n...
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作者：Deng, Mingcherng; Nan, Lin; Wen, Xiaoyan
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Purdue University System; Purdue University; Texas Christian University
摘要：In this study, we show that when a firm needs external financing, information quality has real effects via financing contracts on the firm's input to influence its operational outcome. Interestingly, we find that higher information quality decreases overall efficiency. Our analysis highlights the importance of considering the role of information quality in the presence of the firm's input decision upon financing contracts. In particular, information quality has a feedforward effect on the firm...
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作者：Choi, Jaewon; Thompson, Linh; Williams, Jared
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Yonsei University; University of Texas System; University of Texas El Paso; State University System of Florida; University of South Florida
摘要：Motivated by research in psychology and experimental economics, we assume that investors update their beliefs about an asset's value upon observing the price, but only when the price clearly reveals that others obtained private information that differs from their own private information. Specifically, we assume that investors learn from the price of an asset in an asymmetric manner-they learn from the price if they observe good (bad) private information and the price is worse (better) than wha...
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作者：Acito, Andrew A.; Burks, Jeffrey J.; Johnson, W. Bruce
作者单位：Michigan State University; University of Notre Dame; University of Iowa
摘要：We gain unique insights into materiality judgments about accounting errors by examining SEC comment letter correspondence. We document that managers typically use multiple quantitative benchmarks in their materiality analyses, with earnings being the most common benchmark. In most of the cases we review, managers deem the error immaterial despite its exceeding the traditional 5 percent of earnings rule of thumb, often in multiple periods and by a large degree. Instead of attempting to conceal ...
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作者：Beatty, Anne; Cheng, Lin; Zhang, Haiwen
作者单位：University System of Ohio; Ohio State University; University of Arizona; University of Minnesota System; University of Minnesota Twin Cities
摘要：The SEC's Disclosure Effectiveness Initiative (December 2013) highlights a difference between accounting regulators and academics in their perceptions of Item 1A risk factor disclosure effectiveness. Because most academic evidence relies on pre-financial crisis data, we compare changes in risk factor disclosure informativeness before and after the crisis as a possible explanation for this disconnect. We further explore this discrepancy by considering (i) three classes of market participants, (...
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作者：Moon, James R., Jr.; Shipman, Jonathan E.; Swanquist, Quinn T.; Whited, Robert L.
作者单位：University of Arkansas System; University of Arkansas Fayetteville; University of Alabama System; University of Alabama Tuscaloosa; North Carolina State University
摘要：Despite the intuitive appeal, prior research finds mixed evidence on whether higher audit fees translate to superior audit quality. Under the assumption that product differentiation between auditors is based, in large part, on the level of financial statement assurance, we propose more refined measures of excess audit fees that separate auditor premiums from other fee premiums. Consistent with our conjecture, we identify significant variation in audit pricing across auditors (i.e., auditor pre...
