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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...
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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...
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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...
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作者：Backof, Ann G.; Carpenter, Tina D.; Thayer, Jane
作者单位：University of Virginia; University System of Georgia; University of Georgia
摘要：The Public Company Accounting Oversight Board is concerned about auditors' tendency to ignore relevant information that is inconsistent with management's assumptions underlying complex estimates. We find that priming auditors to consider how management arrived at a particular assumption helps curb aggressive reporting by encouraging auditors to engage in low-level, concrete thinking regarding the direct evidence underlying the assumption. Low-level, concrete thinking enhances auditors' sensiti...
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作者：Mashruwala, Christina; Mashruwala, Shamin
作者单位：University of Alberta
摘要：Prior research documents that, in the presence of investor disagreement, short-sales constraints can lead to equity overvaluation. We examine whether conservative accounting practices reduce the susceptibility to such overpricing, as predicted by Miller (1980). Consistent with Miller's prediction, we find that when shorting constraints and disagreement are high, the degree of overvaluation decreases systematically with accounting conservatism. These findings suggest that financial reporting co...
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作者：Nam, Seunghan; Ronen, Joshua; Ronen, Tavy
作者单位：Rensselaer Polytechnic Institute; Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick
摘要：Information about an executive's decisions at his/her former employer can have a significant impact on the stock returns of his/her current employer, even after the job change occurs. In this article, we analyze transfers of information, which, we argue, reflect executive decision-making ability as executives change jobs. We examine information about restructurings and write-downs at the new employer emerging after the executive has left an employer that indicates the executive is of lower abi...
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作者：Chiu, Tzu-Ting; Guan, Yuyan; Kim, Jeong-Bon
作者单位：Norwegian School of Economics (NHH); City University of Hong Kong; University of Waterloo
摘要：This study examines the relation between narrative risk disclosures in mandatory reports and the pricing of credit risk. In particular, we investigate whether and how the Securities and Exchange Commission (SEC) mandate of risk factor disclosures (RFDs) affects credit default swap (CDS) spreads. Based on the theory of Duffie and Lando (2001), we predict and find that CDS spreads decrease significantly after RFDs are made available in 10-K/10-Q filings. These results suggest that RFDs improve i...
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作者：Patrick, Paige H.
作者单位：University of Washington; University of Washington Seattle
摘要：Many view large payments following mergers or acquisitions as excessive and evidence of rent extraction. Using additional disclosures required by the SEC since 2006, I hand-collect details of preexisting change in control (CIC) provisions in employment agreements and CIC benefits granted to target CEOs during mergers. I find that CIC benefits are renegotiated in approximately 50 percent of my sample. I then investigate whether renegotiation of CIC benefits tends to be opportunistic, or, instea...
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作者：Johnson, Nicole Bastian; Loeffler, Clemens; Pfeiffer, Thomas
作者单位：University of Oregon; Vienna University of Economics & Business; University of Vienna
摘要：We investigate a transfer pricing problem between two divisions within a decentralized firm. An upstream division produces an intermediate good that is used by another division within the firm and is also sold in an external market, where the firm competes with a rival selling a differentiated substitute product. Assuming that headquarters has imperfect information about the upstream division's private information and that communication is restricted, we identify conditions under which the fir...
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作者：Schroeder, David; Yim, Andrew
作者单位：University of London; Birkbeck University London; City St Georges, University of London
摘要：Academics and practitioners have long recognized the importance of a firm's industry membership in explaining its financial performance. Yet, contrary to conventional wisdom, recent research shows that industry-specific profitability forecasting models are not better than economy-wide models. The objective of this paper is to further explore this result and to provide insights into when and why industry-specific profitability forecasting models are useful. We show that industry-specific foreca...
