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作者：Duellman, Scott; Guo, Jun; Zhang, Yan; Zhou, Nan
作者单位：Saint Louis University; Rutgers University System; Rutgers University Camden; Rutgers University New Brunswick; State University of New York (SUNY) System; Binghamton University, SUNY; University System of Ohio; University of Cincinnati
摘要：We document the existence of expertise rents by finding that financial experts on audit committees obtain higher abnormal returns from insider purchases than do non-financial experts on audit committees. We further investigate whether information processing skills work alone or jointly with an information advantage to generate expertise rents. While financial experts on audit committees outperform financial experts on other committees, financial experts on compensation, executive, nominating, ...
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作者：Zhang, Joseph H.
作者单位：University of Memphis
摘要：Accounting comparability among peer firms in the same industry reflects the similarity and the relatedness of firms' operating environments and financial reporting. From the perspectives of inherent audit risk and external information efficiency, comparability is helpful for auditors in assessing client audit risk and lowers the costs of information acquisition, processing, and testing. I posit that the availability of information about comparable clients helps improve audit efficiency and acc...
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作者：Casas-Arce, Pablo; Holzhacker, Martin; Mahlendorf, Matthias D.; Matejka, Michal
作者单位：Arizona State University; Arizona State University-Tempe; Michigan State University; Frankfurt School Finance & Management
摘要：When targets depend on past performance, incentives are adversely affected by the ratchet effect. We provide theory and evidence that incorporating past peer performance into targets can alleviate this adverse incentive effect. In particular, we present an analytical model that characterizes optimal target revisions as a function of past own and past peer performance. We then test the predictions of our model using data on 2008-2010 performance targets from 354 units of a governmental agency r...
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作者：Chen, Feng; Hou, Yu; Richardson, Gordon; Ye, Minlei
作者单位：University of Toronto; Queens University - Canada
摘要：This paper hypothesizes and finds that firms audited by city-industry specialists have more timely disclosures of contingent losses from litigation when there is no news coverage relating to the legal case prior to management disclosures. A closer examination reveals that this result is explained by the specialist auditors' prior experience auditing clients in the same office and industry who are involved with litigation. In our setting, disclosures of litigation-related contingent losses, we ...
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作者：Fitzgerald, Brian C.; Omer, Thomas C.; Thompson, Anne M.
作者单位：Northeastern University; University of Nebraska System; University of Nebraska Lincoln; University of Illinois System; University of Illinois Urbana-Champaign
摘要：This study examines the effects of audit partner tenure and audit partner changes on internal control reporting quality for large U.S. not-for-profit (NFP) organizations. Regulators contend that audit partners lose their objectivity over successive audits, reducing audit quality. A large body of research has examined this issue, primarily in non-U.S. jurisdictions, with mixed results. We examine the associations between audit partner tenure and audit partner changes and the incidence of report...
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作者：Lu, Tong; Sivaramakrishnan, Konduru
作者单位：University of Houston System; University of Houston; Rice University
摘要：We develop a theoretical framework to study the effects of expensing versus capitalization of investment expenditures on capital market asset prices, corporate investment, and investment efficiency. We use a two-period model in which the financial reports at the end of the first period influence the price of the firm. In the first period, the current owner makes an investment decision that yields returns during the first and the second periods. We highlight the benefits and costs of the matchi...
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作者：Reichelstein, Stefan; Sahoo, Anshuman
作者单位：Stanford University; University of Mannheim
摘要：A basic tenet of microeconomics is that for a competitive industry in equilibrium the market price of a product will be equal to its marginal cost. This paper develops a model framework and a corresponding empirical inference procedure for estimating long-run marginal cost in industries where production costs decline over time. In the context of the solar photovoltaic (PV) module industry, we rely primarily on firm-level financial accounting data to estimate the long-run marginal cost of PV mo...
