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作者：Banker, Rajiv D.; Huang, Rong; Natarajan, Ramachandran
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; City University of New York (CUNY) System; Baruch College (CUNY); University of Texas System; University of Texas Dallas
摘要：In this paper we investigate how incentives affect managers' input resource expenditure decisions and how firms make equity grant decisions considering managerial behavior. Focusing on selling, general, and administrative (SG&A) expenditure, we first document that SG&A expenditure creates future value that varies across firms and industries. We hypothesize and find that new equity incentives lead to an increase in SG&A expenditure in companies where SG&A creates a high future value. The extent...
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作者：Chen, Hanwen; Chen, Jeff Zeyun; Lobo, Gerald J.; Wang, Yanyan
作者单位：Xiamen University; University of Colorado System; University of Colorado Boulder; University of Houston System; University of Houston
摘要：We examine the effects of audit quality on earnings management and cost of equity capital for two groups of Chinese firms: state-owned enterprises (SOEs) and non-state-owned enterprises (NSOEs). The differences in the nature of the ownership, agency relations and bankruptcy risks lead SOEs to have weaker incentives than NSOEs to engage in earnings management. As a result, the effect of audit quality in reducing earnings management will be greater for NSOEs than for SOEs. In addition, investors...
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作者：Nicolaou, Andreas I.; Sedatole, Karen L.; Lankton, Nancy K.
作者单位：University System of Ohio; Bowling Green State University; Michigan State University; Marshall University
摘要：This study examines the relation between technology-enabled information system integration (ISI), a mechanism for information sharing in an alliance, and partner trust in the context of how the system's information is used for control and coordination purposes. Prior research suggests both increasing and decreasing effects of ISI on trust and provides few insights regarding the mechanisms by which integrated information systems affect trust. In this study, we develop and empirically test a mod...
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作者：Chung, Dennis Y.; Hrazdil, Karel
作者单位：Simon Fraser University
摘要：We examine whether the post-earnings announcement drift (PEAD) varies cross-sectionally with short-horizon return predictability from order flows, which characterizes the information environment and reflects the extent to which information is efficiently impounded in prices. We first demonstrate that this proxy for market efficiency captures the degree of market frictions that limit arbitrage activities. We then present evidence that the inverse of short-horizon return predictability is negati...
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作者：Hobson, Jessen L.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Standard setters and regulators generally assume that making accounting information easier to process leads to more efficient markets, thereby benefiting traders. I test that assumption in markets that I construct to be more prone to price bubbles. Market efficiency (i.e., trading at expected fundamental economic values) will increase if and only if reduced accounting information complexity leads traders to process that information to a greater extent than more complex information and then to ...
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作者：Kochetova-Kozloski, Natalia; Messier, William F., Jr.; Eilifsen, Aasmund
作者单位：Nevada System of Higher Education (NSHE); University of Nevada Las Vegas
摘要：One hundred and fifty auditors participated in a study that examines whether auditors' probabilistic judgments are closer to a Bayesian benchmark when auditors make judgments using a frequency response mode versus a probability response mode. We test a series of hypotheses that examine the effect of using a frequency response mode by professional auditors both within and outside their knowledge domain (fraud or medical case context) on assessing the likelihood of rare events. The results show ...
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作者：Farrell, Anne M.; Krische, Susan D.; Sedatole, Karen L.
作者单位：University System of Ohio; Miami University; American University; Michigan State University
摘要：We examine employees' subjective valuations of their stock options in terms of their distribution around firms' opportunity cost of issuing options. Using both '' real-world '' and experiment data, we show that a significant proportion of employees (30 percent) and experiment participants (47 percent) apparently fail to fully incorporate the time-value component of option value, and instead anchor on three readily-available values, two of which lie below cost (zero value, intrinsic value) and ...
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作者：Hsu, Charles; Kross, William
作者单位：Hong Kong University of Science & Technology; State University of New York (SUNY) System; University at Buffalo, SUNY
摘要：We re-investigate the market pricing of special items, with particular emphasis on how managers '' frame '' these non-operating earnings components via their inclusion or exclusion from '' street '' earnings, the earnings numbers that firms disclose in their press releases and that analysts track and forecast. When managers include the special items in '' street earnings (i.e., '' street '' = GAAP), the market overprices them, believing the special items to be more persistent than they actuall...
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作者：Cahan, Steven; Zhang, Wei; Veenman, David
作者单位：University of Auckland; State University of New York (SUNY) System; University at Albany, SUNY; University of Amsterdam
摘要：This study investigates Arthur Andersen's audit quality in the decade before the collapse of Enron. Andersen's involvement in the Waste Management audit failures - which relate to audits of the company's 1992-1996 financial statements - led the SEC to accuse Andersen of issuing false and misleading audit reports and resulted in a permanent injunction that prohibited Andersen from further violation of securities laws. We examine whether the Waste Management audit failures were symptomatic of wi...
