-
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...
-
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...
-
作者：Kallunki, Jenni; Kallunki, Juha-Pekka; Niemi, Lasse; Nilsson, Henrik
作者单位：University of Oulu; Aalto University; Stockholm School of Economics
摘要：This study examines the role of an individual auditor's cognitive ability in delivering high-quality audits. Our results from analyzing archival data from Sweden show that audit partners' IQ scores obtained from psychological tests are positively associated with going-concern audit reporting accuracy and audit fee premiums. We also find some, albeit weak, evidence that audit partners' IQ scores are negatively associated with the income-increasing abnormal accruals of the client. These results ...
-
作者：Patterson, Evelyn R.; Smith, J. Reed; Tiras, Samuel L.
作者单位：Indiana University System; Indiana University Bloomington
摘要：Two distinct lines of research have been dedicated to empirically testing how financial reporting quality (measured as the earnings response coefficient or ERC) is associated with management's choice of reporting bias and with audit quality. However, researchers have yet to consider how ERCs are affected by either the auditor's reaction to changes in the manager's reporting bias or the manager's reaction to changes in audit quality. Our study provides theoretical guidance on these interrelatio...
-
作者：Krische, Susan D.
作者单位：American University
摘要：This research examines how investment experience and financial literacy impact investment-related judgments. Financial literacy refers to a person's knowledge of fundamental financial concepts. I begin by documenting investors' demographic characteristics and financial literacy using a relatively large sample of participants (n > 2,000) recruited from Amazon's Mechanical Turk under different categories of investment experience, which I benchmark against national samples of financial capability...
-
作者：Moon, James R., Jr.; Shipman, Jonathan E.; Swanquist, Quinn T.; Whited, Robert L.
作者单位：University System of Georgia; Georgia Institute of Technology
-
作者：Kim, Jae B.; Nekrasov, Alexander; Shroff, Pervin K.; Simon, Andreas
作者单位：Lehigh University; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Minnesota System; University of Minnesota Twin Cities; Pepperdine University
摘要：We examine whether financial analysts understand the valuation implications of unconditional accounting conservatism when forecasting target prices. While accounting conservatism affects reported earnings, conservatism per se does not have an effect on the present value of future cash flows. We examine whether analysts adjust for the effect of conservatism included in their earnings forecasts when using these forecasts to estimate target prices. We find that signed target price errors (actual ...
-
作者：Curtis, Quinn D.; Donelson, Dain C.; Hopkins, Justin J.
作者单位：University of Virginia; University of Texas System; University of Texas Austin; University of Virginia
摘要：This study examines how frequently firms restate when they materially misstate their financial statements using stock option backdating as the setting. Stock option backdating provides a unique opportunity to study this issue because it is possible to estimate misstatements with publicly available information to a high level of confidence, and the extensive media coverage of backdating notified boards of directors of the significant risk of misstatement. After identifying firms that materially...
-
作者：Glover, Steven M.; Taylor, Mark H.; Wu, Yi-Jing
作者单位：Brigham Young University; State University System of Florida; University of South Florida; Texas Tech University System; Texas Tech University
摘要：Reported deficiencies continue to persist in audits of fair value measurements and other complex accounting estimates (hereafter, FVMs), despite improvements in auditor performance observed by regulators. The persistence of reported deficiencies in audits of FVMs suggests that factors underlying this trend may be more complicated and multidimensional than previously suggested by regulators and academic research, which has focused largely on auditors' unsatisfactory performance as the principal...
-
作者：Bonsall, Samuel B.; Comprix, Joseph; Muller, Karl A., III
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Syracuse University
摘要：Concerns are commonly raised that strong public unions extract generous pension benefits from state governments and are the cause of states' burdensome pension obligations. Prior research (Anzia and Moe 2015) finds evidence supporting such concerns. Consistent with incentives to minimize such perceptions, our findings suggest that state pension plans with stronger public unions select higher discount rates to improve reported funding levels. While riskier asset allocations are used to support ...
