-
作者：Lobo, Gerald J.; Paugam, Luc; Zhang, Dana; Casta, Jean Francois
作者单位：University of Houston System; University of Houston; ESSEC Business School; Universite PSL; Universite Paris-Dauphine
摘要：Using a sample of firms from France, where the law requires the use of two auditors, we study the effect of auditor pair composition on audit quality by examining a specific account, goodwill impairment. We document that firms audited by a Big 4-non-Big 4 auditor pair (BS) are more likely to book an impairment and book a larger impairment than firms audited by a Big 4-Big 4 auditor pair (BB) when low-performance indicators suggest a greater likelihood of impairment. Moreover, firms audited by ...
-
作者：Callen, Jeffrey L.; Fang, Xiaohua
作者单位：University of Toronto; State University System of Florida; Florida Atlantic University
摘要：This study examines whether the term of the auditor-client relationship (i.e., auditor tenure) is associated with future stock price crash risk measured both ex ante and ex post. Using a large sample of U.S. public firms with Big 4 auditors, we find robust evidence that auditor tenure is negatively related to one-year-ahead stock price crash risk. The evidence is consistent with monitoring-by-learning where development of client-specific knowledge over the term of the auditor-client relationsh...
-
作者：Bonsall, Samuel B.; Koharki, Kevin; Watson, Luke
作者单位：University System of Ohio; Ohio State University; Washington University (WUSTL); State University System of Florida; University of Florida
摘要：This study investigates the role of tax avoidance in the credit-rating process and whether differences exist in how rating agencies account for the risk relevance of tax avoidance. Using a sample of initial credit ratings assigned to public debt issuances during 1994-2013, our evidence is consistent with Moody's Investors Service and Standard & Poor's assessing the costs and benefits associated with tax avoidance differently from one another, resulting in more frequent and pronounced rating ag...
-
作者：Elliott, W. Brooke; Grant, Stephanie M.; Rennekamp, Kristina M.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Washington; University of Washington Seattle; Cornell University
摘要：Firms' Corporate Social Responsibility (CSR) reports typically frame their strategies in terms of either community or global efforts (i.e., strategy frame). Further, the style used to depict CSR performance in reports often highlights either pictures or words (i.e., presentation style). These two prominent disclosure features of CSR reports promote a natural fit or misfit in the focus (relatively low-level or high-level focus) investors adopt when thinking about the firm and its CSR efforts. F...
-
作者：Carter, Mary Ellen; Franco, Francesca; Gine, Mireia
作者单位：Boston College; University of London; London Business School; University of Navarra; IESE Business School
摘要：Using a large sample of executives in S&P 1500 firms over 1996-2010, we document significant salary and total compensation gaps between female and male executives and explore two possible explanations for the gaps. We find support for greater female risk aversion as one contributing factor. Female executives hold significantly lower equity incentives and demand larger salary premiums for bearing a given level of compensation risk. These results suggest that females' risk aversion contributes t...
-
作者：Rupar, Kathy
作者单位：State University System of Florida; University of Florida
摘要：I investigate whether the alignment between individual investors' expectations about forecast precision and actual forecast precision affects their estimates of firm value, and whether this relationship is mediated by individual investors' perceptions of management credibility and future firm growth. Experimental results confirm that when expected and actual forecast precision align, individual investors estimate higher firm stock prices than when expected and actual forecast precision do not ...
-
作者：Huddart, Steven
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：Guo, Libby, and Liu (2017) (hereafter GLL), examine how pairs of experimental subjects interact in a game framed as a funding request from a privately informed subordinate to a superior. When the superior's pay is higher than the subordinate's, subordinates display more self-serving dishonesty and superiors are more tolerant of it than when their pay is the same. In this discussion, I compare GLL's design with an ultimatum game, consider additional tensions that arise in pay-level comparisons,...
-
作者：Das, Somnath; Kim, Kyonghee; Patro, Sukesh
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; Michigan State University; Northern Illinois University
摘要：We study circumstances when analysts' forecasts diverge from managers' forecasts after management guidance, and the consequences of this divergence for investors and analysts. Our results show that investors' return response to earnings surprises based on analyst forecasts is significantly weaker when analyst and management forecasts diverge, and that this attenuating effect is stronger when the management forecast is more credible. When the divergent management forecast is more accurate than ...
-
作者：Baloria, Vishal P.; Marquardt, Carol A.; Wiedman, Christine I.
作者单位：Boston College; City University of New York (CUNY) System; Baruch College (CUNY); University of Waterloo
摘要：We evaluate the net costs and benefits of the whistleblower (WB) provisions adopted under the Dodd-Frank Reform Act of 2010 by examining investor responses to events related to the proposed regulations. We focus our main analysis on a sample of firms that lobbied against implementation of the WB provisions by submitting a comment letter to the SEC. Lobbying firms are characterized by weaker existing WB programs and greater degrees of managerial entrenchment than a matched control sample of sim...
-
作者：Griffin, Paul A.; Lont, David H.; Sun, Estelle Y.
作者单位：University of California System; University of California Davis; University of Otago; Boston University
摘要：This study finds that investors price firms' greenhouse gas (GHG) emissions as a negative component of equity value, and this valuation discount does not differ between firms that voluntarily disclose to the Carbon Disclosure Project (CDP) and nondisclosing firms. We derive the GHG emissions for nondisclosers from an estimation model that incorporates firm characteristics and industry. The finding that investors view CDP amounts and estimates of emissions as equally value-relevant suggests tha...
