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作者：Drake, Michael S.; Hales, Jeffrey; Rees, Lynn
作者单位：Brigham Young University; University System of Georgia; Georgia Institute of Technology; Utah System of Higher Education; Utah State University
摘要：We survey a broad group of professionals who use financial statements as part of their job to assess the extent to which they believe financial reports suffer from disclosure overload. Consistent with the claims made by regulators, auditors, and preparers, we find that a significant portion of professional financial statement users believe disclosure overload is a problem. However, this group is in the minority, with about twice as many professional users believing that overload is not a probl...
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作者：Kadous, Kathryn; Proell, Chad A.; Rich, Jay; Zhou, Yuepin (Daniel)
作者单位：Emory University; Illinois State University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Regulation requires auditors to raise significant audit issues and concerns to the attention of audit engagement leadership and requires leadership to encourage such communication. This research demonstrates, using an experiment and a survey, that audit team members' willingness to speak up about such issues is associated with their intrinsic motivational orientation. Based on this result, we test whether audit leadership can leverage this relationship to increase speaking up, particularly whe...
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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：Gao, Pingyang
作者单位：University of Chicago
摘要：This paper examines the effects of idiosyncratic accounting information on a firm's cost of capital. By embedding a moral hazard problem into a multifirm asset-pricing model, I show that moral hazard distorts the sharing of idiosyncratic risk but does not affect the sharing of systematic risk in the economy. A firm-level improvement in idiosyncratic information reduces the firm's cost of capital even though it does not affect the implied cost of capital inferred from publicly traded shares. Mo...
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作者：Chung, Hyeesoo (Sally) H.; Hillegeist, Stephen A.; Park, You-Il (Chris); Wynn, Jinyoung P.
作者单位：California State University System; California State University Long Beach; Arizona State University; Arizona State University-Tempe; Nanyang Technological University; University of Hawaii System; University of Hawaii Manoa; University of Louisiana System; Louisiana Technical University
摘要：This study examines the effect of capitalizing acquired in-process research and development (IPR&D) on information asymmetry under Statement of Financial Accounting Standards No. 141 (R) (SFAS 141R). SFAS 141R requires acquirers to fully recognize IPR&D at fair value as an indefinite-lived intangible asset until completion or discontinuation of the project. Prior research suggests IPR&D capitalization will result in an improvement in the information environment. In contrast, we find no evidenc...
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作者：Albuquerque, Ana; Chen, Bingyi; Dong, Qi (Flora); Riedl, Edward J.
作者单位：Boston University; Suffolk University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：This paper provides new evidence on whether and how boards solve costly ex post settling up to recover CEO cash compensation for unrealized gains that fail to materialize. Our analyses are motivated by the likely expanding role for ex post settling up as the risk of compensating executives for unrealized gains that may never materialize increases in a more intangibles-based economy, as well as by the conflicting evidence of prior research. We provide evidence consistent with ex post settling u...
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作者：Chu, Jenny; Dechow, Patricia M.; Hui, Kai Wai; Wang, Annika Yu
作者单位：University of Cambridge; University of Southern California; University of Hong Kong; University of Houston System; University of Houston
摘要：This paper investigates whether maintaining a reputation for consistently beating analysts' earnings expectations can motivate executives to move from within GAAP earnings management to outside of GAAP earnings manipulation. We analyze firms subject to SEC enforcement actions and find that these firms consistently beat analysts' quarterly earnings forecasts in the three years prior to the manipulation period and continue to do so by smaller beats during the manipulation period. We find that ma...
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作者：Malsch, Bertrand
作者单位：Queens University - Canada
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作者：Wangerin, Daniel
作者单位：University of Wisconsin System; University of Wisconsin Madison
摘要：Before completing merger and acquisition (M&A) transactions, acquiring firms conduct due diligence. This process provides acquiring firms with a more informed assessment of the expected costs, benefits, and risks of an acquisition and offers one last opportunity to renegotiate or terminate an M&A transaction. However, acquiring firms must trade off the costs and benefits of performing additional due diligence versus completing the acquisition. Based on an analysis of the time to negotiate the ...
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作者：Hofmann, Christian; Rothenberg, Naomi R.
作者单位：University of Munich; University of Alberta
摘要：We study a principal's choice of whether to produce an imperfect forecast about a firm's outcome either before or after an agent's effort choice. The early forecast affects the agent's effort choice, which means the forecast can also be used to infer information about the effect of the agent's effort on outcome. The late forecast is more accurate because, by working hard, the agent also learns about productivity, implying that the late forecast has an additional performance measurement role. W...
