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作者：Bratten, Brian; Payne, Jeff L.; Thomas, Wayne B.
作者单位：University of Kentucky; University of Oklahoma System; University of Oklahoma - Norman
摘要：In this study we examine whether the reported performance of one firm affects the discretionary reporting behavior of another firm. We do this by identifying the leader within each industry, defined as the first large announcing firm. We find that the discretionary performance of followers (those firms announcing after the leader) relates positively to the leader's reported performance. Specifically, when the leader misses analysts' expectations, followers report lower discretionary accruals, ...
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作者：Gao, Xinghua; Jia, Yonghong
作者单位：Governors State University
摘要：We test whether internal control weaknesses (ICWs) endanger cash resources that manifests in a lower value of cash. Our results indicate that investors value liquid assets in ICW firms substantially less than they do in non-ICW firms. The negative valuation effect of weak internal control mainly concentrates on ICWs related to the control environment or overall financial reporting process. While firms remediating ICWs reverse the value loss from holding cash, firms whose internal control deter...
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作者：Johnstone, David
作者单位：University of Sydney
摘要：It is widely held that better financial reporting makes investors more confident in their predictions of future cash flows and reduces their required risk premia. The logic is that more information leads necessarily to more certainty, and hence lower subjective estimates of firm beta or covariance with other firms. This is misleading on both counts. Bayesian logic shows that the best available information can often leave decision makers less certain about future events. And for those cases whe...
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作者：Bauer, Andrew M.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：I examine whether corporate tax avoidance is associated with internal control weaknesses (ICWs) disclosed under the Sarbanes-Oxley Act (SOX). ICWs disclosed under SOX are frequently related to a firm's tax function. When pervasive ICWs exist, the likelihood increases that these frequent tax-related ICWs spill over from financial reporting issues to tax avoidance objectives. Thus, my research helps corporate stakeholders understand the implications of internal controls beyond simply financial r...
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作者：Hong, Hyun A.; Hung, Mingyi; Zhang, Jieying
作者单位：University of California System; University of California Riverside; Hong Kong University of Science & Technology; University of Texas System; University of Texas Dallas
摘要：This study investigates how the use of debt covenants around the world varies with legal institutions. On the basis of syndicated loans in 36 countries, we find that debt covenants are more prevalent in countries with stronger law enforcement and weaker creditor rights, suggesting that law enforcement facilitates, and creditor rights substitute for, the use of covenants. We also find that the substitution effect between covenant use and creditor rights exists mainly in countries with strong la...
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作者：Luft, Joan; Shields, Michael D.; Thomas, Tyler F.
作者单位：Michigan State University; University of Wisconsin System; University of Wisconsin Madison
摘要：Organizations have often been criticized for reliance on a single item of accounting information (e.g., profit) in evaluating performance, because of its incompleteness. We provide theory-based experimental evidence that under frequently occurring performance-evaluation conditions (subjective performance evaluation, causal ambiguity, and individual differences in cognitive ability, knowledge, and/or motivation that lead to different interpretations of information), reliance on a single item of...
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作者：Desai, Hemang; Rajgopal, Shiva; Yu, Jeff Jiewei
作者单位：Southern Methodist University; Columbia University; University of Arizona
摘要：In this paper, we address two questions that emerged in the aftermath of the 2008 financial/ banking crisis. First, did the financial statements of bank holding companies provide an early warning of their impending distress? Second, were the actions of four key financial intermediaries (short sellers, equity analysts, Standard and Poor's credit ratings, and auditors) sensitive to the information in the banks' financial statements about their increased risk and potential distress? We find a sig...
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作者：Dou, Paul; Truong, Cameron; Veeraraghavan, Madhu
作者单位：Monash University
摘要：This study examines whether cultural dimensions such as individualism and uncertainty avoidance can explain the variation in the profitability of the earnings momentum strategies in international markets. Using the time-varying cultural indices of Tang and Koveos (2008) for 30,383 firms from 41 countries over the period 1995-2008, we show that the level of individualism in a country is positively associated and the level of uncertainty avoidance is negatively associated with earnings momentum ...
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作者：Plumlee, Marlene A.
作者单位：Utah System of Higher Education; University of Utah
摘要：Johnstone (2016) provides a theoretical analysis of how information might increase uncertainty and a firm's cost of equity capital (COEC). The author's analysis serves to highlight outcomes that he suggests receive limited attention in prior studies. He focuses on how more information might result in greater, rather than less, uncertainty and whether a decrease in uncertainty leads to a lower COEC. I discuss how his study provides an incremental contribution to the theoretical literature and w...
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作者：Guo, Hui; Qiu, Buhui
作者单位：University System of Ohio; University of Cincinnati; Wuhan University; University of Sydney
摘要：Although many studies show that the presence of institutional investors facilitates the incorporation of accounting information into financial markets, the evidence of informed trading by institutions is rather limited in the extant literature. We address these inconsistent findings by proposing PC_NII, percentage changes in the number of a stock's institutional investors, as a novel informed trading measure. PC_NII is better able to detect informed trading than are changes in institutional ow...
