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作者：Drymiotes, George; Sivaramakrishnan, Konduru
作者单位：University of Cyprus; Texas A&M University System; Texas A&M University College Station
摘要：Recent corporate governance failures have highlighted the need for aligning the incentives of corporate boards with shareholder interests. Equity-based board compensation has been viewed as a way to achieve this objective because it ties board compensation with long-term firm value. However, we show that long-term incentives alone may not suffice in motivating boards to fulfill their role in monitoring corporate executives, although they are effective in inducing boards to play an active advis...
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作者：Jennings, Ross; Weaver, Connie D.; Mayew, William J.
作者单位：University of Texas System; University of Texas Austin; Duke University; Texas A&M University System; Texas A&M University College Station
摘要：We examine the extent of implicit taxes at the corporate level and the effect on implicit taxes of the Tax Reform Act of 1986 (TRA86) in the United States. Using a variety of specifications, we find consistent evidence that implicit taxes eliminated virtually all of the cross-sectional differences in explicit tax preferences prior to TRA86, and then abruptly declined and eliminated only about one-third of the cross-sectional differences in tax preferences in years following TRA86. We triangula...
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作者：Cao, Ying; Myers, Linda A.; Omer, Thomas C.
作者单位：Chinese University of Hong Kong; University of Arkansas System; University of Arkansas Fayetteville; Texas A&M University System; Texas A&M University College Station
摘要：In this study, we explore the association between company reputation and the likelihood of a financial statement restatement (i.e., a revealed misstatement). Reputation can bring real economic benefits to companies. and once impaired it is costly to rebuild. Because of this, companies with strong reputations have incentives to provide higher-quality financial statements. We focus on restatements because they are one of the most visible forms of impaired financial reporting quality, and we sugg...
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作者：Chen, Clara Xiaoling; Lu, Hai; Sougiannis, Theodore
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Toronto
摘要：We examine whether the agency problem is an important determinant for the selling, general, and administrative (SG& A) cost asymmetry or cost stickiness phenomenon and whether strong corporate governance mitigates the agency problem in this case. Prior studies have documented the asymmetrical behavior of SG& A costs (i. e., SG& A costs increase more when activity rises than they decrease when activity falls) and have explained this phenomenon primarily with economic factors. Using data for S& ...
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作者：Beneish, Messod D.; Press, Eric; Vargus, Mark E.
作者单位：Indiana University System; Indiana University Bloomington; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Drexel University
摘要：This paper shows that the threat of litigation impacts managers' accounting and stock-trading decisions in periods preceding technical default. We analyze managers' pre-default accrual strategies separately and jointly with their pre-default insider trading activity in a sample of 462 firms that experienced technical default in the period 1983-1997. We find that pre-default abnormal insider selling provides incentives for upward earnings management independent of debt contracts. Our evidence t...
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作者：Kelly, Khim; Low, Bernardine; Tan, Hun-Tong; Tan, Seet-Koh
作者单位：University of Waterloo; Singapore Management University; Nanyang Technological University
摘要：Regulators express concerns with investors' unquestioning reliance on analysts' recommendations, which prior research has shown to be associated with lower trading returns. Thus, regulators have published guides advising investors to conduct independent research and required analyst firms to disclose their distribution of recommendations in order to alert investors to potential bias in analysts' recommendations. We conducted three experiments to investigate whether and why investors rely on an...
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作者：Rothenberg, Naomi R.
摘要：This paper links the quality (i.e., noise and bias) of productivity information and of performance measures to the choice of whether or not production should occur in teams. Agents have private access to a predecision, imprecise productivity signal and agents' performance is measured with both error and bias. With a private, perfect productivity signal, agents earn informational rents, and team production is more costly because teams are more productive and thus earn more rents than agents who...
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作者：Hoitash, Rani; Hoitash, Udi; Johnstone, Karla M.
作者单位：Bentley University; Northeastern University; University of Wisconsin System; University of Wisconsin Madison
摘要：Boards of directors and compensation committees predominantly use financial measures reflecting executive managerial duties as inputs to executive compensation decisions. Yet, there is little research on the link between executive compensation and nonfinancial performance measures. We develop and test a model of chief financial officer (CFO) compensation with specific emphasis on the link between the disclosure of internal control material weaknesses (ICMW), a nonfinancial performance measure ...
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作者：Lim, Youngdeok; Jung, Kooyul
作者单位：University of New South Wales Sydney; Korea Advanced Institute of Science & Technology (KAIST)
摘要：This paper examines the accuracy and optimism of forecasts made by affiliated analysts compared to those made by independent analysts. Using Korean chaebol firms, we test the information-sharing hypothesis and the conflict of interest hypothesis. Our results show that the forecasts made by the affiliated analysts are less accurate and more optimistic than those made by the independent analysts. This finding is inconsistent with the information-sharing hypothesis but supports the conflict of in...
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作者：Firth, Michael; Mo, Phyllis L. L.; Wong, Raymond M. K.
作者单位：Lingnan University; City University of Hong Kong
摘要：This study uses a unique institutional setting in China to investigate empirically the association between the organizational form of CPA firms (unlimited liability versus limited liability) and the reporting conservatism of auditors. Based on a sample of 5,007 audits of Chinese listed companies from the period 2000-2004, we find that auditors in unlimited liability partnership firms are more likely to issue modified audit opinions than are auditors in limited liability CPA firms. This auditor...
