-
作者：Defond, Mark L.; Zhang, Jieying
作者单位：University of Southern California
摘要：We find that bond price quotes impound bad earnings news on a more timely basis than good earnings news and that the bond market impounds bad news on a more timely basis than the stock market. We also find that the timeliness of the bond market reaction to bad news is concentrated primarily among speculative-grade bonds, consistent with earnings news having a larger effect on bond price quotes when default risk is high. In addition, we find that a portion of the bad news impounded by the bond ...
-
作者：Ecker, Frank
作者单位：Duke University
摘要：Due to a lack of an information history, IPO firms' information precision is not only generally low but also likely to be estimated initially with considerable error. I hypothesize and find that the deviation between expected and realized information precision is predictably associated with the magnitude and the persistence of long-run abnormal returns after an IPO. Specifically, an upward (downward) revision of information precision results in positive (negative) abnormal returns over the per...
-
作者：Bova, Francesco; Minutti-Meza, Miguel; Richardson, Gordon; Vyas, Dushyantkumar
作者单位：University of Toronto; University of Miami
摘要：The costs and benefits of the Sarbanes-Oxley Act of 2002 (SOX) have been oft-debated since the inception of the Act. Much of the extant literature has assessed the costs and benefits of SOX to publicly traded companies. We focus on the costs of SOX compliance for private firms wanting to exit the private market via either an acquisition by a public firm or an IPO. Consistent with our predictions we establish two principal findings. First, SOX appears to have shifted the preferences of private ...
-
作者：Clune, Richard; Hermanson, Dana R.; Tompkins, James G.; Ye, Zhongxia (Shelly)
作者单位：University System of Georgia; Kennesaw State University; University of Texas System; University of Texas at San Antonio
摘要：The nominating committee (NC) of the board identifies and nominates individuals for board service, thus establishing the board's composition. Despite this important role, relatively little is known about the NC process, including NC members' actions and thought processes. Based on interviews of 20 U.S. public company NC members, including 16 chairs, we focus on two primary questions: (1) what is the extent of influence that the Chief Executive Officer (CEO) has over committee processes, and (2...
-
作者：Causholli, Monika; Chambers, Dennis J.; Payne, Jeff L.
作者单位：University of Kentucky; University System of Georgia; Kennesaw State University
摘要：Prior to the Sarbanes-Oxley Act of 2002, audit partners experienced economic pressure to grow revenue from the sale of nonaudit services to their audit clients. To an auditor who is highly rewarded for revenue generation and growth, nonaudit services may represent a particularly strengthened economic bond with the client. Prior research shows that, in general, nonaudit service fees received in the current period do not impair audit quality. We examine a different setting. We propose that audit...
-
作者：Kim, Jeong-Bon; Zhang, Liandong
作者单位：City University of Hong Kong
摘要：The recent financial crisis has stimulated a renewed interest in understanding the determinants of stock price crash risk (i.e., left tail risk). Recent research shows that opaque financial reports enable managers to hide and accumulate bad news for extended periods. When the accumulated bad news reaches a certain tipping point, it will be suddenly released to the market at once, resulting in an abrupt decline in stock price (i.e., a crash). This study extends this line of research by examinin...
-
作者：Quadackers, Luc; Groot, Tom; Wright, Arnold
作者单位：Vrije Universiteit Amsterdam; Northeastern University
摘要：Although skepticism is widely viewed as essential to audit quality, there is a debate about what form is optimal. The two prevailing perspectives that have surfaced are neutrality and presumptive doubt. With neutrality, auditors neither believe nor disbelieve client management. With presumptive doubt, auditors assume some level of dishonesty by management, unless evidence indicates otherwise. The purpose of this study is to examine which of these perspectives is most descriptive of auditors' s...
-
作者：Young, Joni J.
作者单位：University of New Mexico
摘要：The U.S.-based Financial Accounting Standards Board (FASB) emphasizes that accounting standard-setting is not and should not be regarded as a political process. Employing the case of accounting for stock compensation, I examine a recent debate in which FASB appears to have successfully established and maintained a boundary between a technical accounting process and politics. This case is interesting because an earlier, failed effort to expense stock compensation was described as highly politic...
-
作者：Mauldin, Elaine G.; Wolfe, Christopher J.
作者单位：University of Missouri System; University of Missouri Columbia; Texas A&M University System; Texas A&M University College Station
摘要：Auditors commonly rely on reviewing management's estimation process to audit accounting estimates. When control deficiencies bias the estimation process by creating omissions of critical inputs, standards require that auditors replace or supplement review of management's estimation process with tests that can identify the omissions. Importantly, overreliance on reviewing management's estimation process when it has been biased by a control deficiency can result in auditor acceptance of an inapp...
-
作者：Bedard, Jean C.; Hoitash, Rani; Hoitash, Udi
作者单位：Bentley University; University of New South Wales Sydney; Northeastern University
摘要：Considerable prior research investigates whether the extent of insider presence on corporate boards is detrimental. However, the majority of past research treats all inside directors as a homogenous group. This study considers that issue in the context of chief financial officers (CFO) serving on their own company's board. Our research is important because individuals in different executive roles bring different skills and knowledge to board interactions, highlighting the potential for differe...
