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作者：Cohen, Jeffrey; Krishnamoorthy, Ganesh; Wright, Arnold
作者单位：Boston College; Northeastern University
摘要：The recent financial crisis has brought to the forefront the need for companies to effectively manage their risks. In this regard, one approach that has gained prominence is enterprise risk management (ERM). Importantly, little is known about the link between ERM and the financial reporting process. This link is critical, because it is imperative that financial reporting adequately depicts the financial status (e.g., valuations, estimates) and associated risks of a company as revealed by ERM. ...
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作者：Burgstahler, David; Chuk, Elizabeth
作者单位：University of Washington; University of Washington Seattle; University of California System; University of California Irvine
摘要：The accounting literature includes numerous examples of discontinuities at prominent benchmarks that are widely interpreted as evidence that earnings are managed to meet those benchmarks. However, there are a few examples where discontinuities do not exist, which are sometimes interpreted as inconsistent with earnings management. Alternative explanations for discontinuities have also been suggested. This paper reviews, evaluates, and integrates the available evidence and concludes that the the...
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作者：Black, Ervin L.; Christensen, Theodore E.; Joo, T. Taylor; Schmardebeck, Roy
作者单位：University of Oklahoma System; University of Oklahoma - Norman; University System of Georgia; University of Georgia; New Mexico State University; University of Missouri System; University of Missouri Columbia
摘要：Managers have a variety of tools at their disposal to influence stakeholder perceptions. Earnings management and the strategic reporting of non-GAAP earnings are just two of the available menu choices. We explore how real earnings management and accruals management influence the probability that a company will disclose a non-GAAP adjusted earnings metric in its earnings press release and the likelihood that it will do so aggressively. We first investigate situations where managers already meet...
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作者：Huang, Shawn X.; Pereira, Raynolde; Wang, Changjiang
作者单位：Arizona State University; Arizona State University-Tempe; University of Missouri System; University of Missouri Columbia; University System of Ohio; University of Cincinnati
摘要：This paper examines the relation between analyst coverage and whether firms meet or beat analyst earnings forecasts. We distinguish between whether a firm's reported quarterly earnings meet (i.e., equal or exceed by one cent) or beat (i.e., exceed by more than one cent) its consensus analyst earnings forecasts. We find a positive relation between analyst coverage and whether a firm meets or beats analyst forecasts. However, the more pronounced relation is that between analyst coverage and meet...
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作者：Batta, George; Muslu, Volkan
作者单位：Claremont Colleges; Claremont McKenna College; Claremont Graduate University; University of Houston System; University of Houston
摘要：Moody's analysts and sell-side equity analysts adjust GAAP earnings as part of their research. We show that adjusted earnings definitions of Moody's analysts are significantly lower than those of equity analysts when companies exhibit higher downside risk, as measured by volatility in idiosyncratic stock returns, volatility in negative market returns, poor earnings, and loss status. Relative to the adjusted earnings definitions of equity analysts, adjusted earnings definitions of Moody's analy...
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作者：Jorgensen, Bjorn N.; Morley, Julia
作者单位：University of London; London School Economics & Political Science
摘要：Kohlbeck and Mayhew (2017) create a new data set featuring two types of related party transactions. They use empirical-archival methods to investigate the effect of such transactions on the likelihood of restatements and on audit fees. Their findings suggest that related party transactions related to directors, officers and major shareholders are associated with poor tone at the top and that this leads management to negotiate for lower-quality audits to minimize monitoring costs. To offer aven...
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作者：Choi, Jong-Hag; Kim, Seil; Raman, K. K.
作者单位：Seoul National University (SNU); City University of New York (CUNY) System; Baruch College (CUNY); University of Texas System; University of Texas at San Antonio
摘要：We examine the effects of the 1998 merger of Price Waterhouse (PW) and Coopers & Lybrand (CL) on the audit quality of the merged firm PricewaterhouseCoopers (PwC) at both the firm and office levels, where audit quality is surrogated by the auditor's propensity to issue a going-concern opinion, clients' likelihood of meeting or beating analysts' earnings forecasts, and clients' accrual quality. At the firm level, we find that the merger increased audit quality for PwC relative to the audit qual...
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作者：Kohlbeck, Mark; Mayhew, Brian W.
作者单位：State University System of Florida; Florida Atlantic University; University of Wisconsin System; University of Wisconsin Madison
摘要：This study investigates whether or not related party transactions serve as red flags that warn of potential financial misstatement. We hand-collect related party transactions for S&P 1500 firms in 2001, 2004, and 2007 and find a positive correlation between these transactions and future restatements, suggesting restatements are more likely when a firm engages in related party transactions. The association is concentrated among transactions that appear to reflect tone at the top rather than arg...
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作者：Perreault, Stephen; Kida, Thomas; Piercey, M. David
作者单位：Providence College; University of Massachusetts System; University of Massachusetts Amherst
摘要：Since most audit engagements identify multiple proposed audit adjustments, auditors must decide how best to present and negotiate these adjustments with their clients. Prior research indicates that auditors can negotiate adjustments individually (a sequential strategy) or can negotiate multiple adjustments within the same negotiation setting (a simultaneous strategy). This paper examines the relative effectiveness of a simultaneous versus sequential negotiation strategy in eliciting concession...
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作者：Anderson, Shannon W.; Chang, Hwei Fern; Cheng, Mandy M.; Phua, Yee Shih
作者单位：University of California System; University of California Davis; University of New South Wales Sydney
摘要：Trust is often posited to substitute for management control in interfirm transactions. However, this raises questions of how trust arises in new relationships, and whether trust that is not based on prior experience transacting together is sufficient to persuade managers to forgo investments in management controls. We use an experiment to test whether two features of the early stage of an interfirm relationship influence a buyer's initial trust in a supplier and have consequences for subsequen...
