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作者：Francis, Jennifer; Huang, Allen H.; Rajgopal, Shivaram; Zang, Amy Y.
作者单位：Duke University; University of Washington; University of Washington Seattle; University of Rochester
摘要：We examine the association between chief executive officer (CEO) reputation (proxied by the extent of press coverage) and the quality of the firm's earnings (proxied by two accruals-based measures). We test three explanations for an association between these constructs: the efficient contracting hypothesis suggests that reputed CEOs are associated with good earnings quality, while the rent extraction and matching explanations argue that reputed CEOs are associated with poor earnings quality. U...
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作者：Francis, Jere R.; Wang, Dechun
作者单位：University of Missouri System; University of Missouri Columbia; University of Nebraska System; University of Nebraska Lincoln
摘要：The association of a country's investor protection regime with the quality of reported earnings is examined for a large sample of firms from 42 countries. Three attributes of earnings are evaluated: the magnitude of signed abnormal accruals, the likelihood of reporting losses, and accounting conservatism (timely loss recognition). We find that earnings quality increases for firms with Big 4 auditors when a country's investor protection regime gives stronger protection to investors; specificall...
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作者：Bowen, Robert M.; Rajgopal, Shivaram; Venkatachalam, Mohan
作者单位：University of Washington; University of Washington Seattle; Duke University
摘要：We investigate whether accounting discretion is (a) abused by opportunistic managers who exploit lax governance structures or (b) used by managers in a manner consistent with efficient contracting and shareholder value-maximization. Prior research documents an association between accounting discretion and poor governance quality and concludes that such evidence is consistent With abuse of the latitude-allowed by accounting rules. We argue that this interpretation may be premature because, if m...
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作者：Guay, Wayne R.
作者单位：University of Pennsylvania
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作者：Jones, Keith L.; Krishnan, Gopal V.; Melendrez, Kevin D.
作者单位：George Mason University; Lehigh University; New Mexico State University
摘要：We examine the association between the existence and the magnitude of a fraudulent event that overstated earnings, nonfraudulent restatements of financial statements, and nine competing models of discretionary accruals, accrual estimation errors (Dechow and Dichev 2002; McNichols 2002), and the Beneish (1997, 1999) M-score. We use the size of the downward earnings restatement following the discovery of the fraud to proxy for the degree of discretion exercised to perpetrate-the fraud. We find t...
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作者：Choi, Jong-Hag; Kim, Jeong-Bon; Liu, Xiaohong; Simunic, Dan A.
作者单位：Seoul National University (SNU); Concordia University - Canada; Hong Kong Polytechnic University; Hong Kong University of Science & Technology; University of British Columbia
摘要：In this paper, we first develop a model in which national legal environments play a crucial role in determining auditor effort and audit fees. Our model predicts that (a) audit fees increase monotonically with the strength or strictness of a country's legal liability regime; (b) given a legal liability regime, Big 4 auditors charge higher audit fees than non-Big 4 auditors; and (c) the Big 4 fee premium is lower in countries with strong legal regimes than in countries with weaker legal regimes...
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作者：Laksmana, Indrarini
作者单位：University System of Ohio; Kent State University; Kent State University Kent; Kent State University Salem
摘要：This study examines whether certain board and compensation committee characteristics, as proxies for board governance quality, are associated with the extent of board disclosure of executive compensation practices. A unique feature of this study is the development of a disclosure index using 23 compensation-related disclosures. I validate this index by showing that the disclosure scores are inversely related to two measures of information asymmetry: bid-ask spread and return volatility. This p...
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作者：Chen, Chih-Ying; Lin, Chan-Jane; Lin, Yu-Chen
作者单位：Singapore Management University; National Taiwan University; National Cheng Kung University
摘要：Mandatory audit partner rotation has been adopted in some countries while audit firm rotation is still being debated in many places. Most of the extant research on the relation between auditor tenure and earnings quality provides evidence at the audit firm level. However, since audit firm tenure is correlated with partner tenure and audit firm rotation is more costly than partner rotation, it is important to know whether earnings quality is related to audit firm tenure, partner tenure, or both...
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作者：Jackson, Kevin E.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Screening potential investments involves dividing a set of companies into those that are suitable to consider for investment and those that are less desirable (Kinder 2005). In this paper, I document that nonprofessional investors (represented by MBA students) are susceptible to scale compatibility effects when implementing an investment screen using nonfinancial measures. Such effects occur when investors rely more on a scale-compatible, nonfinancial measure whose values directly map into inv...
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作者：Pinello, Arianna Spina
作者单位：University System of Georgia; Georgia State University
摘要：Archival studies document an asymmetrically strong market reaction to positive vis-a-vis negative earnings surprises. This finding appears inconsistent with the well-known effect of loss aversion and remains unexplained. I posit that this pattern can arise when investors' earnings expectations do not coincide with analyst forecasts. Numerous studies document optimistic biases in analyst forecasts, so if investors perceive such optimism, their earnings expectations will be lower than analyst fo...
