-
作者：Lin, Kenny Z.; Mills, Lillian F.; Zhang, Fang; Li, Yongbo
作者单位：Lingnan University; University of Texas System; University of Texas Austin; Hong Kong Baptist University; Hong Kong University of Science & Technology
摘要：This paper examines whether ties to politicians by corporate boards of directors weaken the effectiveness of tax authorities in constraining tax avoidance in China. We use a unique data set to measure geographic time-variant tax enforcement, including the probability of income tax audit, the expertise of tax officers, and the consequences of underreporting tax liabilities. Based on a sample of 11,121 firm-years from 2003 to 2013, we find that the deterrent effect of the probability that a firm...
-
作者：Georgiou, Omiros
作者单位：University of Manchester
摘要：Investors and analysts are designated as the primary users of financial reports by standard setters, yet we know very little about their use of accounting information and about their relationship with standard setters. This paper explores how investors and analysts evaluate the usefulness of fair values to their work. Standard setters typically presume that investors and analysts view accounting as a practice of valuation and, therefore, favor the greater use of fair value measurement. However...
-
作者：Blouin, Jennifer L.; Robinson, Leslie A.; Seidman, Jeri K.
作者单位：University of Pennsylvania; Dartmouth College; University of Virginia
摘要：Our study evaluates the role of coordination, at both the government and the firm level, on the transfer prices set by U.S. multinational corporations (MNCs) when income taxes and duties cannot be jointly minimized with a single transfer price. We find that either the presence of a coordinated income tax and customs enforcement regime or coordination between the income tax and customs functions alters transfer prices for these firms. Our analyses have implications for both firms and taxing aut...
-
作者：Wang, Cong; Xie, Fei; Xin, Xiangang
作者单位：The Chinese University of Hong Kong, Shenzhen; University of Delaware; City University of Hong Kong
摘要：We examine the relation between accounting conservatism and inside debt held by managers in the form of pension benefits and deferred compensation. We find that financial reporting is less conservative in firms whose CEOs hold more inside debt, particularly in firms with high default risk and agency costs of debt. This is consistent with our hypothesis that by aligning managerial incentives more closely with those of debtholders, inside debt reduces debtholders' expropriation concerns and thus...
-
作者：Bereskin, Frederick L.; Hsu, Po-Hsuan; Rotenberg, Wendy
作者单位：University of Delaware; University of Hong Kong; University of Toronto
摘要：We examine the consequences of real earnings management from an innovation perspective and investigate the patent output of firms likely to be managing earnings through altering their R&D expenditures. We find that R&D cuts related to earnings management lead to fewer patents, less influential patent output, and lower innovative efficiency compared to other R&D cuts. Our results thus suggest that real earnings management may obstruct firms' technological progress and highlight the potential co...
-
作者：Barron, Orie E.; Schneible, Richard A., Jr.; Stevens, Douglas E.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; State University of New York (SUNY) System; University at Albany, SUNY; University System of Georgia; Georgia State University
摘要：The increase in investor diversity over the last 35-40 years prompted us to revisit trading volume reactions to earnings announcements and how these reactions vary with firm size. We argue that this increase in investor diversity would likely increase differences in the precision of pre-announcement information around earnings announcements, particularly for large firms. This suggests that the role of earnings announcements in resolving investor disagreement, as reflected in trading volume rea...
-
作者：Han, Bing; Kong, Dongmin; Liu, Shasha
作者单位：University of Toronto; Southwestern University of Finance & Economics - China; Zhongnan University of Economics & Law; Huazhong University of Science & Technology; Jinan University
摘要：We examine the improvements in forecast accuracy that result from analysts' visits to listed companies. We find that company visits significantly enhance the accuracy of the analysts' earnings forecasts for those companies. The benefit from company visits is more pronounced for companies that are more neglected or less accessible and for brokerage firms that face less pressure for optimistic forecasts from buy-side clients. Our results are robust and remain significant after controlling for en...
-
作者：Li, Na; Wahid, Aida Sijamic
作者单位：Singapore Management University; University of Toronto
摘要：This study examines the impact of director tenure diversity on board effectiveness. We find that tenure-diverse boards exhibit significantly higher CEO performance-turnover sensitivity and that firms with tenure-diverse audit committees are less likely to experience accounting restatements. Furthermore, we document that tenure-diverse compensation committees also award less excess compensation and are less likely to overcompensate. Even though tenure-diverse boards seem to exhibit superior mon...
-
作者：Gao, Ru (Tina); Shivakumar, Lakshmanan; Sidhu, Baljit K.
作者单位：University of Queensland; University of London; London Business School; University of New South Wales Sydney
摘要：Several major stock exchanges, including the NASDAQ and NYSE Euronext, have recently embarked on schemes to sponsor and promote analyst coverage for firms listed on their exchanges. We evaluate the efficacy of one such scheme pioneered by the Singapore Exchange (SGX). We find that sponsored analysts produce forecasts with similar bias, but lower accuracy than those issued by analysts voluntarily following a firm. In analyses that control for self-selection into the SGX Scheme, we find that spo...
-
作者：Hopkins, Justin
作者单位：University of Virginia
摘要：This paper investigates whether a U.S. circuit court ruling that made it easier for public corporations to defend against security class actions led to more misreporting. In a difference-in-differences framework, I find an increase in restatements for firms affected by the ruling relative to unaffected firms. Furthermore, within affected firms, these results are concentrated among those that experienced the lowest abnormal returns in response to the ruling, the firms most likely to face merito...
