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作者：Barron, Orie E.; Byard, Donal; Yu, Yong
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; City University of New York (CUNY) System; Baruch College (CUNY); University of Texas System; University of Texas Austin
摘要：This study examines how financial disclosures with earnings announcements affect sell-side analysts' information about future earnings, focusing on disclosures of financial statements and management earnings forecasts. We find that disclosures of balance sheets and segment data are associated with an increase in the degree to which analysts' forecasts of upcoming quarterly earnings are based on private information. Further analyses show that balance sheet disclosures are associated with an inc...
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作者：Guo, Lan; Libby, Theresa; Liu, Xiaotao (Kelvin)
作者单位：Wilfrid Laurier University; University of Waterloo; Northeastern University
摘要：Vertical pay dispersion is the difference in pay across different hierarchical levels within an organization (Milkovich and Newman 1996). While vertical pay dispersion may be useful in attracting, retaining, and motivating highly skilled employees (Lazear and Rosen 1981; Lazear 1995; Prendergast 1999), our study investigates a potential disadvantage; specifically, the negative impact of perceived unfairness of vertical pay dispersion on employees' budgeting decisions. We predict and find that ...
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作者：Dierker, Martin; Subrahmanyam, Avanidhar
作者单位：Korea Advanced Institute of Science & Technology (KAIST); University of California System; University of California Los Angeles
摘要：We explore the optimal timing of voluntary disclosures when firms and outside investors have correlated but not identical signals. By delaying disclosure of their signal, firms encourage the acquisition of information by investors by reducing the latter's exposure to the long-term risk of holding the asset. Immediate disclosure reduces rents from acquiring the correlated signal, and thus is sometimes suboptimal in a dynamic setting. We characterize conditions under which postponing disclosure ...
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作者：Fan, Yun; Liu, Xiaotao (Kelvin)
作者单位：University of Houston System; University of Houston; Northeastern University
摘要：Prior studies of classification shifting in the income statement conclude that managers misclassify core expenses as special items to inflate reported core earnings (McVay 2006; Fan, Barua, Cready, and Thomas 2010). These studies do not distinguish between the core expense components-cost of goods sold (COGS) and selling, general, and administrative expenses (SGA). This study models COGS and SGA separately, and investigates managers' misclassification of COGS versus SGA to meet different profi...
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作者：Fang, Junxiong; Pittman, Jeffrey; Zhang, Yinqi; Zhao, Yuping
作者单位：Fudan University; Memorial University Newfoundland; American University; University of Houston System; University of Houston
摘要：We examine which of two opposing financial reporting incentives that group-affiliated firms experience shapes their accounting transparency evident in auditor choice. In one direction, complex group structure and intragroup transactions enable controlling shareholders to pursue diversionary activities that they later hide by distorting reported earnings. In the other direction, as outside investors price-protect against potential expropriation, controlling shareholders may be eager to improve ...
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作者：Bertomeu, Jeremy; Darrough, Masako; Xue, Wenjie
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Carnegie Mellon University
摘要：This paper examines the role of conservatism when an agent can manipulate upcoming earnings before all uncertainty is resolved. An increase in conservatism, by reducing the likelihood of favorable earnings, requires steeper performance pay to maintain the same level of incentives, which in turn increases the equilibrium earnings manipulation. Trade-offs between inducing effort and curbing manipulation predict an interior level of conservatism as optimal. The optimal level of conservatism is po...
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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 ...
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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,...
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作者：Klassen, Kenneth J.; Lisowsky, Petro; Mescall, Devan
作者单位：University of Waterloo; University of Illinois System; University of Illinois Urbana-Champaign; University of Saskatchewan
摘要：Using a survey of tax executives from multinational corporations, we document that some firms set their transfer pricing strategy to minimize tax payments, but more firms focus on tax compliance. We estimate that a firm focusing on minimizing taxes has a GAAP effective tax rate that is 6.6 percentage points lower and generates about $43 million more in tax savings, on average, than a firm focusing on tax compliance. Available COMPUSTAT data on sample firms confirm our survey-based inferences. ...
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作者：Huang, Rong; Krishnan, Murugappa (Murgie); Shon, John; Zhou, Ping
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); William Paterson University New Jersey; Rutgers University System; Rutgers University New Brunswick; Fordham University
摘要：We develop parametric estimates of the imitation-driven herding propensity of analysts and their earnings forecasts. By invoking rational expectations, we solve an explicit analyst optimization problem and estimate herding propensity using two measures: First, we estimate analysts' posterior beliefs using actual earnings plus a realization drawn from a mean-zero normal distribution. Second, we estimate herding propensity without seeding a random error, and allow for nonorthogonal information s...
