-
作者：Liu, Xiaotao (Kelvin); Liu, Xiaoxia; Reid, Colin D.
作者单位：Northeastern University; Hohai University; Washington & Lee University
摘要：We examine the effect of stakeholder orientation on firms' cost management as proxied by selling, general, and administrative (SG&A) cost stickiness. Using a sample of 19,783 firm-years, we find that customer and employee orientation are associated with greater SG&A cost stickiness. Furthermore, the effect of customer orientation on SG&A cost stickiness is more prominent in firms where SG&A costs create high future value, growth firms, and firms with strong corporate governance. In contrast, t...
-
作者：Cheng, Qiang; Du, Fei; Wang, Brian Yutao; Wang, Xin
作者单位：Singapore Management University; University of Illinois System; University of Illinois Urbana-Champaign; Renmin University of China; University of Hong Kong
摘要：We examine the stock price impact of corporate site visits using a unique data set of site visits to listed firms in China. Our main findings are as follows. First, the market reaction around corporate site visits is statistically and economically significant and is stronger for group visits, visits conducted by mutual fund managers, visits covering accounting and finance topics, visits to firms with poor information environments, and visits to manufacturing firms. Second, the stock returns ar...
-
作者：Atwood, T. J.; Lewellen, Christina
作者单位：University of Arkansas System; University of Arkansas Fayetteville; North Carolina State University
摘要：We investigate whether tax avoidance and manager diversion are complementary when the costs of diversion are low by comparing dividend payouts, performance, and overinvestments of tax haven firms versus other multinational firms based in countries with weak and strong investor protections. Desai and Dharmapala (2006, 2009a, b) and Desai et al. (2007) set forth a theory of tax avoidance within an agency framework (the D&D theory) based on the assumption that tax avoidance and manager diversion ...
-
作者：Beatty, Anne; Cheng, Lin; Zach, Tzachi
作者单位：University System of Ohio; Ohio State University; University of Arizona
摘要：Using a large sample of debt contracts, we study the determinants of excluding nonrecurring items from covenant calculations. We investigate this choice across firms, across items, and through time. We find that nonrecurring items are more likely to be excluded when the agency costs of debt are higher and less likely to be excluded when they predict borrowers' performance. Our evidence further suggests that the interplay between agency costs and nonrecurring items' predictive ability affects t...
-
作者：Wu, Joanna Shuang; Zhang, Ivy Xiying
作者单位：University of Rochester; University of California System; University of California Riverside
摘要：We study whether mandatory adoption of International Financial Reporting Standards (IFRS) is associated with changes in the sensitivity of CEO turnover to accounting earnings and how the impact of IFRS adoption varies with country-level institutions and firm-level incentives. We find that CEO turnover responds more to a firm's accounting performance after adoption. This increase in turnover-to-earnings sensitivity is concentrated in countries with stronger enforcement of financial reporting an...
-
作者：Czerney, Keith; Schmidt, Jaime J.; Thompson, Anne M.
作者单位：University of Missouri System; University of Missouri Columbia; University of Texas System; University of Texas Austin; University of Illinois System; University of Illinois Urbana-Champaign
摘要：This article investigates whether investors respond to explanatory language (EL) added to unqualified audit reports. Although prior research finds an association between auditor EL and lower financial reporting quality, surveys suggest that many investors limit their attention to the unqualified nature of the opinion. We use three-day abnormal returns and abnormal trading volume to measure investor response to EL in unqualified audit reports issued from 2000 to 2014. We find little evidence to...
-
作者：Cooper, David J.; Ezzamel, Mahmoud; Robson, Keith
作者单位：University of Alberta; University of Edinburgh; Cardiff University; Hautes Etudes Commerciales (HEC) Paris
摘要：This field study examines the workings of multiple performance measurement systems (PMSs) used within and between a division and Headquarters (HQ) of a large European corporation. We explore how multiple PMSs arose within the multinational corporation. We first provide a first-order analysis which explains how managers make sense of the multiplicity and show how an organization's PMSs may be subject to competing processes for control that result in varied systems, all seemingly functioning, bu...
-
作者：Rozenbaum, Oded
作者单位：George Washington University
摘要：EBITDA is a commonly used performance measure for (i) valuation, (ii) debt contracting, and (iii) executive compensation. The widespread use of EBITDA by stakeholders may induce managers to focus their attention on EBITDA. Since EBITDA excludes various expenses, managers who fixate on EBITDA may underweight the excluded expenses when determining their firms' investments in capital and leverage levels. I find that managers who fixate on EBITDA overinvest in capital and overlever their firm rela...
-
作者：Choi, Jong-Hag; Choi, Sunhwa; Myers, Linda A.; Ziebart, David
作者单位：Seoul National University (SNU); Lancaster University; Sungkyunkwan University (SKKU); University of Tennessee System; University of Tennessee Knoxville; University of Kentucky
摘要：We find that financial statement comparability enhances the ability of current period returns to reflect future earnings, as measured by the future earnings response coefficient (FERC). This suggests that comparability improves the informativeness of stock prices and allows investors to better anticipate future firm performance. In addition, using both the FERC and stock price synchronicity tests, we find that comparability increases the amount of firm-specific information (rather than market/...
-
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...
